Standard Chartered is collecting data from appellants in a Sh7 billion court award for verification and processing of claims, management has said, as it affirms its commitment to the judicial process.
The 629 former employees were awarded the amount in a landmark 16-year pension battle that went all the way to the Supreme Court over an undervalued pension.
The bank announced a structured process,commencing September 22, 2025, for pensioners to collect information and process claims.
“Standard Chartered Bank Kenya Pensions Fund is fully complying with the judicial process notice of the Supreme Court’s ruling dated September 5, 2025,” management said in an official statement.
Additionally, the Standard Chartered Bank Kenya Pensions Fund is also addressing all enquiries with all pensioners who are not among the 629 appellants.
Last week, the Nairobi Securities Exchange listed lender issued a profit warning, telling investors that its 2025 earnings will be impacted as it moves to settle the Sh7 billion pension obligation for former employees.
The Tier 1 lender 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 announcement saw the bank’s share price at the NSE tumble, shedding close to Sh15. The share price however averaged Sh287 at the start of the week.
Standard Chartered began the year with a share price of Sh279.75 and has since gained 9.47 per cent on that price valuation, ranking it 49th on the NSE in terms of year-to-date performance.
The profit warning means that profits will drop by at least Sh7.1 billion or more, compared to the Sh28.5 billion reported in 2024, a figure almost similar to what it is awarding former employees in pension compensation.
Capital Markets Authority regulations demand that any listed company must issue a caution if its profits are projected to fall by 25 per cent.
“We would like to reassure our clients and stakeholders that SCBK is adequately capitalised to meet the anticipated obligations,” said board chairperson Kellen Kariuki.
“We continue to execute our strategy of combining differentiated cross-border capabilities with leading wealth management expertise underpinned by sustainability.”
Last month, the bank announced the payment of an interim dividend of Sh8 for every ordinary share of Sh5.
The forecasted low revenue is expected to take a toll on shareholders’ earnings at the end of the financial year, after enjoying one of the highest dividends in 2024.
by MARTIN MWITA
