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HomeDaily NewsFriday, September 5, 2025Kenyan Authorities Take Action on Corruption, Fraud, and a Pension Dispute - September 2025
Business & Economy5 stories from 2 sources

Kenyan Authorities Take Action on Corruption, Fraud, and a Pension Dispute - September 2025

The Supreme Court of Kenya dismissed Standard Chartered Bank Kenya’s final appeal in a longstanding pension dispute, upholding a ruling that mandates the bank to refund billions in pension surpluses and recalculate benefits for 629 former employees. The court dismissed the bank's bid to halt a Court of Appeal ruling ordering the payment. In a separate case, former Migori Governor Okoth Obado is set to have corruption charges withdrawn after agreeing to forfeit assets valued at KSh 235 million in a plea deal concerning the alleged misappropriation of KSh 73.4 million. Additionally, the Kenya Revenue Authority (KRA) successfully thwarted a Sh123 million tax fraud attempt involving 161 containers of rice at a Mombasa Container Freight Station. Amidst this, the Institute of Certified Public Accountants of Kenya (ICPAK) is intensifying efforts to remove unqualified individuals from accounting positions, following revelations of widespread fake certificates in the civil service.

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Friday 3:19 PMThe Kenyan Wall Street

Stanchart Kenya Loses Multibillion Pension Case

Stanchart Kenya Loses Multibillion Pension Case

The Supreme Court of Kenya has dismissed Standard Chartered Bank Kenya’s final appeal in a longstanding pension dispute, upholding a Retirement Benefits Appeals Tribunal (RBAT) ruling. This decision mandates the bank to refund billions in pension surpluses and recalculate benefits for 629 former employees.

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Key Highlights

The Supreme Court of Kenya has dismissed Standard Chartered Bank Kenya’s final appeal in a longstanding pension dispute, upholding a Retirement Benefits Appeals Tribunal (RBAT) ruling. This decision mandates the bank to refund billions in pension surpluses and recalculate benefits for 629 former employees.

  • The Supreme Court struck out the appeal on September 5, 2025, citing lack of jurisdiction as the case did not involve constitutional interpretation.
  • The dispute originated from a 1997 actuarial valuation revealing a KSh 1.536 billion surplus, which retirees argued was wrongly returned to the bank.
  • The RBAT had ordered a refund of KSh 1.1 billion to the Standard Chartered Kenya Pension Fund, with interest accruing from February 2000, and recalculation of benefits to include cost-of-living adjustments and housing allowances, with arrears from March 2009.
  • The total liability, including arrears and adjustments, is estimated to exceed KSh 7 billion.
  • The case involved 629 former employees led by Abdalla Osman.
Friday 11:20 AMCapital BusinessFirst

KRA stops Sh123mn tax fraud involving rice containers

KRA stops Sh123mn tax fraud involving rice containers

The Kenya Revenue Authority (KRA) has successfully thwarted a Sh123 million tax fraud attempt involving 161 containers of rice at a Mombasa Container Freight Station (CFS). The fraud, which occurred between August 1 and 23, 2025, was detected during routine audit checks, leading to the full recovery of the at-risk amount.

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Friday 1:20 PMCapital Business

Supreme Court throws out StanChart bid to stop retirees’ dues

Supreme Court throws out StanChart bid to stop retirees’ dues

The Supreme Court of Kenya has dismissed an application by Standard Chartered Bank Kenya Limited (StanChart) attempting to halt a Court of Appeal (CoA) ruling. This ruling directed StanChart to pay millions of shillings in pension dues to former employees, marking a significant development in a long-standing dispute.

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Key Highlights

The Supreme Court of Kenya has dismissed an application by Standard Chartered Bank Kenya Limited (StanChart) attempting to halt a Court of Appeal (CoA) ruling. This ruling directed StanChart to pay millions of shillings in pension dues to former employees, marking a significant development in a long-standing dispute.

  • The Supreme Court, led by Vice President and Chief Justice Philomena Mwilu, found it lacked jurisdiction under Article 163(4)(a) of the Constitution.
  • The dispute originated when the Retirement Benefits Authority (RBA) dismissed retirees' claims, leading them to the Tribunal, which ruled in their favor.
  • The CoA upheld the Tribunal's decision, emphasizing trustee duties in pension fund management and mandating the bank to compute and disburse the pension dues.
Friday 2:20 PMCapital Business

ICPAK urges crackdown as fake accountants infiltrate

ICPAK urges crackdown as fake accountants infiltrate

The Institute of Certified Public Accountants of Kenya (ICPAK) has raised concerns about the increasing presence of unqualified individuals in accounting positions, attributing this trend to corporate failures and a decline in financial accountability. ICPAK is intensifying efforts to remove these individuals, particularly after revelations from the Public Service Commission (PSC) about widespread fake certificates in the civil service.

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Friday 2:20 PMThe Kenyan Wall Street

Former Migori Governor Okoth Obado Forfeits KSh 235mn in Plea Deal

Former Migori Governor Okoth Obado Forfeits KSh 235mn in Plea Deal

Former Migori Governor Okoth Obado is set to have corruption charges against him withdrawn after agreeing to forfeit assets valued at KSh 235 million. This development follows a plea bargain with the Office of the Director of Public Prosecutions (ODPP) regarding the alleged misappropriation of KSh 73.4 million between 2013 and 2017.

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Key Highlights

Former Migori Governor Okoth Obado is set to have corruption charges against him withdrawn after agreeing to forfeit assets valued at KSh 235 million. This development follows a plea bargain with the Office of the Director of Public Prosecutions (ODPP) regarding the alleged misappropriation of KSh 73.4 million between 2013 and 2017.

  • KSh 235 million in assets will be forfeited, including eight parcels of land and two Toyota Land Cruiser vehicles.
  • The plea bargain involves Okoth Obado and 17 co-accused persons.
  • The Ethics and Anti-Corruption Commission (EACC) has stated it did not sign or review the plea bargain before it was filed, arguing this undermined their dispute resolution framework.
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Key Highlights

The Kenya Revenue Authority (KRA) has successfully thwarted a Sh123 million tax fraud attempt involving 161 containers of rice at a Mombasa Container Freight Station (CFS). The fraud, which occurred between August 1 and 23, 2025, was detected during routine audit checks, leading to the full recovery of the at-risk amount.

  • Most important fact or figure from the article: KRA blocked a Sh123 million tax fraud.
  • Key person or organization involved: Kenya Revenue Authority (KRA), Ethics and Anti-Corruption Commission (EACC), Directorate of Criminal Investigations (DCI).
  • Notable detail that adds context: The fraud involved irregular clearance of 161 containers of rice at a Mombasa CFS, and a comprehensive investigation is underway to identify all culpable individuals, including staff.

Key Highlights

The Institute of Certified Public Accountants of Kenya (ICPAK) has raised concerns about the increasing presence of unqualified individuals in accounting positions, attributing this trend to corporate failures and a decline in financial accountability. ICPAK is intensifying efforts to remove these individuals, particularly after revelations from the Public Service Commission (PSC) about widespread fake certificates in the civil service.

  • Over 35,000 certified professionals are registered with ICPAK, yet many are unemployed.
  • Elizabeth Kalunda, Chairperson of ICPAK, emphasized the institute’s strong stance against those who “masquerade as accountants.”
  • The PSC revealed that 1,019 officers used fake certificates in 2023/2024, leading to 449 dismissals.