Standard Chartered Bank Kenya (SCBK) has warned that its 2025 earnings will take a hit as it moves to settle a Ksh7 billion pension obligation.
This follows a Supreme Court-backed judgment in favour of 629 former employees.
In a profit warning dated September 15, 2025, SCBK projected that its net earnings for the year ending December 31, 2025, would be at least 25 percent lower than those recorded in 2024.
The lender linked the drop primarily to the judgment of the Retirement Benefits Appeals Tribunal (RBAT) in the case of Abdalla Osman & 628 Others vs. The Retirement Benefits Authority and 11 Others.
Standard Chartered Bank Kenya Limited (“SCBKL”) will report its annual results for the year ending 31 December 2025 in the first quarter of 2026.
SCBKL projects that net earnings/(profit After Tax) for the year ending 31 December 2025 will be approximately 25 per cent lower than the net earnings for the year ended 31 December 2024.
Also Read: Standard Chartered Bank Issues Notice to 629 Staff Over Ksh 7 Billion Pension Payout
Standard Chartered Bank Settlement Case
In a ruling first delivered in April 2022 and clarified further in May 2025, the tribunal ordered Standard Chartered Bank to make pension payments to the affected appellants.
The bank had since called on pensioners, dependents, and administrators of deceased appellants to provide employment records, bank details, and proof of identity to process payments.
Consequently, the bank began the settlement process, issuing a public notice directing the claimants, or their beneficiaries, to present documents at its Almary Green Business Park offices in Nairobi to facilitate verification and disbursement.
“We would like to reassure our clients and stakeholders that SCBK is adequately capitalised to meet the anticipated obligations,” said Board Chairperson Kellen Kariuki.
The Ksh7 billion payout comes from a long-running legal battle in which former Standard Chartered Bank employees contested the handling of their pension benefits.
Also Read: Standard Chartered Bank Announces Changes in Directorship
Assurance to Stakeholders
Although the settlement will have an impact on short-term profitability, Standard Chartered Bank stated that it remains financially strong.
The bank has indicated that it is committed to its long-term growth strategy.
“We would like to reassure our clients and stakeholders that Standard Chartered Bank is adequately capitalised to meet the anticipated obligations.
“We continue to execute our strategy of combining differentiated cross-border capabilities with leading wealth management expertise underpinned by sustainability,” the bank added.
Follow our WhatsApp Channel and X Account for real-time news updates.
