What’s Behind Standard Chartered Sh7 Billion Pension Dispute With Retirees?

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Standard Chartered Bank Kenya is locked in a prolonged legal battle with 629 of its former employees over Sh7.79 billion in contested pension payments.

The dispute, rooted in pension miscalculations and fund management dating back to the 1990s, escalated this month when the bank secured a High Court order suspending enforcement of a tribunal ruling that had ordered payout of the dues.

The Retirement Benefits Appeals Tribunal (RBAT) had on June 18 directed the bank and the trustees of the Standard Chartered Kenya Pension Fund to pay Sh7.09 billion in recalculated pension benefits, plus Sh709 million in legal costs, to the retirees.

The tribunal’s decision followed years of litigation over how benefits were calculated and whether the bank had misused a Sh1.1 billion surplus from the pension scheme.

Who Are the 629 Retirees Suing Standard Chartered?

The group includes former Standard Chartered Kenya employees who retired as early as the 1990s, among them 111 individuals who left under a Voluntary Early Retirement Scheme in 1994. These retirees were enrolled in the Standard Chartered Kenya Pension Fund, a defined benefit scheme established in 1975.

They allege the bank used flawed actuarial calculations when determining their lump-sum payouts, significantly reducing their retirement benefits.

In addition, the group argues that Standard Chartered and the scheme trustees unlawfully withdrew Sh1.1 billion from the fund’s surplus, money that, in their view, should have been used to enhance or top up their pension entitlements.

Altogether, the retirees had initially sought Sh9 billion in compensation: Sh5.79 billion in unpaid benefits and interest, plus Sh3.21 billion from the surplus and associated claims.

RBAT’s Ruling

The RBAT ruled in favor of the retirees, finding that the pension fund applied incorrect actuarial factors and failed to comply with the fund’s Trust Deed and Rules.

The tribunal ordered the bank to recalculate lump-sum payouts, including housing allowances, future salary increases, and cost-of-living adjustments. It also instructed the Retirement Benefits Authority (RBA) to supervise the process.

The tribunal supported its decision by citing a 1996 pension booklet and conversion tables that demonstrated discrepancies in how the retirees’ benefits were calculated. It also rejected Standard Chartered’s argument that the tribunal lacked jurisdiction, affirming that it had full authority under the Retirement Benefits Act.

Standard Chartered Pushes Back in Court

Following the ruling, Standard Chartered and the pension fund’s trustees filed an application at the High Court, securing an order that blocks implementation of the tribunal’s decision until the matter is heard.

The bank argues that the tribunal acted outside its powers and that its directive requiring recalculations undermines the contractual terms outlined in the pension trust documents.

Standard Chartered further claimed that enforcing the ruling could expose the bank to up to Sh30 billion in liabilities. The bank now seeks a judicial review to quash the tribunal’s decision, citing procedural errors and arguing that the tribunal had no authority to act after delivering its judgment.

The case will be heard by Justice Bahati Mwamuye on September 9, 2025.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.