Standard Chartered Starts Settling Ksh7B Pension Bill Amid Investor Jitters

Standard Chartered has started collecting data from the 629 former employees awarded a Ksh 7 billion pension payout after the Supreme Court upheld a ruling in their favour.

The bank says the process, which began on September 22, 2025, will help verify claims and ensure smooth disbursement in line with the court’s directive.

“Standard Chartered Bank Kenya Pensions Fund is fully complying with the judicial process notice of the Supreme Court’s ruling dated September 5, 2025,” the management said in a statement.

It added that it is also responding to queries from pensioners who were not part of the 629 appellants.

The case dates back 16 years, when the employees accused the bank of undervaluing their benefits after switching from a defined-benefit to a defined-contribution scheme in 1999.

Several courts, including the Retirement Benefits Appeals Tribunal, ruled in favour of the pensioners before the Supreme Court confirmed the award. Estimates show the bank’s liability could climb past Sh7 billion once arrears, interest, and actuarial recalculations are factored in.

The lender recently issued a profit warning, telling investors that its 2025 earnings will fall by at least 25 per cent compared to last year, mainly due to the pension obligation.

Following the announcement, its share price on the Nairobi Securities Exchange fell by nearly Sh15, trading around Sh285 this week.

Standard Chartered had opened the year at Ksh 279.75 and gained about 9.5 per cent year to date, but the pension hit has raised investor concerns.

“We would like to reassure our clients and stakeholders that SCBK is adequately capitalised to meet the anticipated obligations.” She added.

“We continue to execute our strategy of combining differentiated cross-border capabilities with leading wealth management expertise underpinned by sustainability.”

Pensioners who were not part of the 629 have threatened further legal action if excluded, arguing the same ruling should apply to them.

A High Court order has also temporarily halted part of the payout until a dispute over legal fees claimed by lawyer Ruth Wanyonyi is resolved.

The situation has placed the lender under pressure from all sides: pensioners demanding compensation, investors worried about shrinking profits, and the market reacting with sharp share price drops.