StanChart Starts Paying Pensioners After Court Ruling: Here’s The Process For Full Claims

Standard Chartered Bank Kenya has commenced processing payments to 629 former employees following a Supreme Court decision that ended a 16-year legal battle over pension miscalculations worth an estimated Sh7 billion.

On Friday, the lender began collecting information from the petitioners in order to make payments totalling an estimated Sh7 billion, marking a significant victory for the retired staff who successfully challenged the bank’s pension calculations.

The Supreme Court has declined a request by the Standard Chartered Bank and its Pension Fund to stop a Sh7 billion payout to 629 former employees, effectively ending the bank’s final legal attempts to avoid the massive settlement.

The dispute stems from the bank’s transition from a defined benefit to a defined contribution pension scheme. The 629 staff successfully petitioned the court, arguing that their pension savings had been undervalued when the bank’s pension scheme changed from a defined benefit to a defined contribution scheme.

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.

The Claims Process

The bank has outlined a structured verification process for affected pensioners:

When: The process will commence from Monday 22, September 2025

Where: Claims will be verified at the Almary Green Business Park in Nairobi, where pensioners or their successors will present the necessary documents, including pension statements

What to Bring: Pensioners or their legal successors must present necessary documentation, including pension statements and other verification materials.

“We have initiated a structured process to execute the judgement in accordance with the legal requirements and are committed to maintaining open communication with affected pensioners,” Standard Chartered said.

The bank has assured stakeholders of its financial readiness: “We would like to assure our clients and stakeholders that we are adequately capitalised to meet the anticipated obligations”.

The bank will fund the payments, though it has indicated that final amounts may be lower than the initial Sh7 billion estimate.

Standard Chartered and its pension fund took the case to the Supreme Court after the Court of Appeal dismissed an appeal in March this year, upholding a 2023 High Court ruling in favour of the pensioners’ payout.

Standard Chartered Bank Kenya’s final attempt to block a Sh30 billion pension payout to its former employees has collapsed after the Supreme Court struck out the its appeal, citing lack of jurisdiction.

The ruling establishes an important precedent for pension fund governance in Kenya, affirming the oversight powers of regulatory bodies over pension scheme management.

This landmark case represents one of Kenya’s largest pension settlements and highlights the importance of proper pension fund management.

For the 629 affected former employees, it marks the end of a lengthy legal battle and the beginning of receiving their rightfully calculated pension benefits.