Ex-Standard Chartered Staff Accuse Bank of Defying Supreme Court in Billions Pension Case

Nairobi, Kenya — 2025-09-22 16:45 EAT.

A fresh storm has erupted over Standard Chartered Bank Kenya’s handling of a decades-old pension dispute, as former employees accuse the bank and trustees of ignoring multiple court orders that found actuarial factors were misapplied during the 1999 transition from a Defined Benefit (DB) to a Defined Contribution (DC) scheme.

The Latest

On September 5, the Supreme Court dismissed the bank’s final appeal, upholding earlier rulings by the Retirement Benefits Tribunal, High Court, and Court of Appeal. Deputy Chief Justice Philomena Mwilu ruled that the bank failed to prove constitutional violations under Article 163(4)(a) to warrant fresh hearings.

Yet, while the bank has started paying dues to the 629 members covered in the original suit, a parallel group calling itself the non-629 members claims they are being illegally excluded despite identical circumstances.

“Failure to comply will compel the pensioners to petition the RBA under Section 46 of the Retirement Benefits Act for removal of the Trustees and to pursue all available remedies in Kenya and internationally,” the group warned in a statement issued on September 20.

The bank maintains that only the 629 members named in the original litigation qualify for settlement, a stance the excluded pensioners call discriminatory and in contempt of judicial authority.

Context in Brief

The dispute began on January 1, 1999, when Standard Chartered shifted its staff retirement plan from a DB to a DC scheme. Former employees argue that actuarial factors used in computing benefits were unlawfully applied, leading to massive underpayments running into billions of shillings.

Key events in the saga:

• 2002–2018: Retirement Benefits Tribunal and High Court rule in favour of pensioners.

• 2021: Court of Appeal dismisses bank’s objections, ordering payment.

• 2025-09-05: Supreme Court closes litigation, terming matter “of profound public interest.”

Despite this chain of victories, excluded members allege the bank is shielding trustees and issuing misleading public notices to limit liability.

Law, Policy & Process

• Retirement Benefits Act (Section 46): Grants RBA powers to remove trustees for misconduct or defiance of legal obligations.

• Constitution of Kenya (Art. 27): Guarantees equality and freedom from discrimination.

• Supreme Court Ruling (Sept 5, 2025): Upholds Court of Appeal directive for recalculation and payment of dues with investment returns from 1999 to date.

• Next Steps: Pensioners plan petitions to RBA, potential contempt motions, and international arbitration if compliance delays persist.

Voices & Stakeholders

• Excluded Pensioners:

  “Any additional entitlements must attract the same rate of investment return realised by the Fund from inception to date,” said a joint statement by the non-629 members on September 20.

• Bank Officials:

  “We are complying strictly with the court’s orders as they apply to the original litigants,” a senior Standard Chartered legal officer told reporters on background.

• Legal Analysts:

  “If facts and actuarial errors are identical, excluding some members risks violating both equality provisions under Article 27 and fiduciary duties under trust law,” argued Dr. Faith Omollo, a pensions law expert at the University of Nairobi.

• Labour Unions:

  “This case exposes systemic gaps in Kenya’s retirement benefits oversight,” said COTU Secretary-General Francis Atwoli in a September 21 interview, urging Parliament to review pension governance laws.

Evidence & Data

Indicator	Figure / Source	Date Verified
Members paid under original suit	629 (Court of Appeal Judgment)	Sept 2025
Estimated unpaid dues (non-629 group)	KSh 3–5 Billion (Pensioners’ legal filings)	Sept 2025
Year of DB → DC scheme transition	1999 (Bank Records)	Jan 1999
Supreme Court ruling date	Sept 5, 2025 (SCOK Judgment No. 14/2025)	Sept 2025

Risks & Implications

• Legal: Risk of contempt of court if bank defies binding orders.

• Financial: Billions in arrears plus compounded investment returns may hit bank’s balance sheet.

• Regulatory: Possible removal of trustees under Section 46 of the RBA Act.

• Reputational: Prolonged dispute damages Standard Chartered’s ESG and compliance ratings in Kenya.

What We Don’t Know

• Will the RBA intervene directly if petitions are filed?

• How many total pensioners were affected by the 1999 actuarial miscalculations?

• Will excluded members seek international arbitration if Kenyan remedies fail?

Timeline

• 1999-01-01: DB → DC scheme transition with alleged actuarial errors.

• 2002–2018: Tribunal & High Court rulings favour pensioners.

• 2021-07: Court of Appeal orders recalculation and payment.

• 2025-09-05: Supreme Court dismisses bank appeal; final judgment delivered.

• 2025-09-20: Excluded members threaten RBA petitions and international action.

What to Watch

• RBA Response: Petitions expected by October 2025.

• Trustee Liability: Possible removal hearings under Section 46 RBA Act.

• Parliamentary Debate: Calls for pension governance reforms gaining traction.

Related Coverage

• [Explainer: How Kenya’s Retirement Benefits Act Protects Pensioners]

• [Analysis: Supreme Court Powers in Labour & Pension Disputes]