Standard Chartered Bank Kenya has reassured shareholders and the market following the Supreme Court’s dismissal of its final appeal in a long-running pension dispute.
The ruling enforces a Retirement Benefits Appeals Tribunal (RBAT) judgment requiring the bank to pay over KSh 7 billion (approximately USD 54.2 million) in compensation to 629 former employees.
In a statement issued Monday, the bank confirmed it has “initiated a structured process” to execute the judgment and will maintain open communication with affected pensioners.
“We are committed to meeting our obligations within the law and remain adequately capitalised to meet the anticipated liabilities,” the bank said.
Final Appeal Dismissed, Legal Path Exhausted
The Supreme Court struck out the bank’s petition on September 5, 2025, citing a lack of jurisdiction, as the case did not involve constitutional interpretation. This decision upholds RBAT’s April 28, 2022, ruling and closes a legal battle that has spanned more than two decades.
The tribunal had found that Standard Chartered Bank Kenya and its pension trustees failed to apply the 1999 Trust Deed and Rules, used incorrect actuarial factors, and excluded key allowances in pension calculations.
Breakdown of Orders and Estimated Liability
RBAT directed the bank to:
- Refund KSh 1.1 billion to the Standard Chartered Kenya Pension Fund
- Recalculate lump sum and monthly pension benefits for 629 retirees
- Include cost-of-living adjustments, housing allowances, and future increases
- Apply interest from February 2000 and arrears dating back to March 2009
Actuarial estimates place the total liability at over KSh 7 billion, factoring in arrears, adjustments, and interest accrued over the years.
Pensioners’ Claims Upheld
The retirees, led by Abdalla Osman, accused the bank of misrepresenting actuarial factors and failing to implement agreed-upon benefit enhancements. RBAT upheld these claims and ordered comprehensive recalculations.
Both the High Court and the Court of Appeal had previously dismissed the bank’s challenges, affirming that RBAT acted within its mandate.
