Supreme Court Upholds Tribunal in Stanchart 1.1Bn Pension Case- The Kenyan Wall Street

The Supreme Court has dismissed Standard Chartered Bank Kenya’s appeal in a pension dispute with 629 former employees, leaving intact a ruling by the Retirement Benefits Appeals Tribunal (RBAT).

• The dispute dates back to a 1997 actuarial valuation that showed a surplus of KSh 1.536 billion, which the retirees argued had been wrongly returned to the bank instead of being used to boost member benefits.
• The Apex Court struck out the petition, saying it lacked jurisdiction since the case did not involve interpretation or application of the Constitution.

• While the tribunal’s written order specifically mentioned the KSh 1.1 billion refund, actuarial estimates suggest the total liability, including arrears and adjustments, could exceed KSh 7 billion.

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The Supreme Court ruling makes enforceable RBAT’s April 28, 2022 judgment, which had sided with the retirees led by Abdalla Osman. The tribunal had found that the bank and its trustees failed to apply the 1999 Trust Deed and Rules, relied on incorrect actuarial factors, and excluded key allowances.

It directed the bank to refund KSh 1.1 billion to the Standard Chartered Kenya Pension Fund, with interest accruing from February 2000. It had also ordered the recalculation of lump sum and monthly pension benefits to include cost-of-living adjustments, housing allowance, and future increases, with arrears dating back to March 2009.

Pensioners’ Case and RBAT Orders

The petitioners accused the bank of misrepresenting actuarial factors, which resulted in lower lump sum payouts, and of failing to implement cost-of-living adjustments and housing allowances provided for under the 1999 Trust Deed and Rules.

RBAT upheld these claims and directed comprehensive recalculations of pension benefits. It also ordered that interest be applied at court rates from 2009 until payment in full, significantly raising the cost of compliance.

The High Court and the Court of Appeal both rejected the bank’s challenges, ruling that RBAT acted within its powers.

On Sept 5, 2025, the Supreme Court struck out the final petition, citing its limited jurisdiction. The bank and trustees must bear costs, though a KSh 6,000 security deposit was refunded.

The Apex Court’s dismissal closes the last avenue of appeal. Standard Chartered Bank Kenya and its trustees must now implement the RBAT orders in full. That includes refunding the pension surplus, recalculating and paying arrears, and applying cost-of-living adjustments and housing allowances.