STANCHART ISSUES PROFIT WARNING AFTER SUPREME COURT ORDERS KSH7B PENSION PAYOUT

Standard Chartered Bank Kenya has issued a profit warning after the Supreme Court upheld a ruling compelling the lender to pay out nearly KSh7 billion in pension arrears to 629 former employees.
In a notice published on Monday September 15, 2025, the bank said its profit for the year ending 31 December 2025 is expected to fall by about 25 per cent compared to 2024, citing the one-off cost of settling the pension dispute.
The case, filed by Abdalla Osman & 628 Others, arose from the bank’s switch from a defined-benefit to a defined-contribution pension scheme. The claimants argued their benefits had been under-computed and that a surplus in the pension fund was wrongly retained by the bank.
Following a series of appeals, the Supreme Court dismissed the lender’s final challenge, leaving in force orders by the Retirement Benefits Appeals Tribunal to recompute pensions, refund the fund surplus with interest dating back to 2000, and make immediate payouts.
StanChart has called on the affected retirees, their dependants and administrators of deceased members to present identification and employment records at Almary Green Business Park in Nairobi from 22 September 2025 for verification and processing of payments.
Despite the anticipated hit to annual earnings, the bank assured investors it remains adequately capitalised and that its long-term strategy and operations will not be compromised by the court-ordered settlement.