Stanchart Kenya Loses Multibillion Pension Case
Supreme Court dismisses Stanchart's appeal, upholding RBAT's KSh 1.1B refund and pension recalculation for 629 ex-employees...
✨ 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.
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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 In a separate case, former Migori Governor Okoth Obado is set to have corruption charges withdrawn after agreeing to forfeit assets valued at KSh 235 million in a plea deal concerning the alleged misappropriation of KSh 73.4 million.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.
