Stanchart's pension troubles intensify as 629 retirees file a petition with the UK watchdog


A group of 629 former employees of Standard Chartered Bank Kenya, who recently won a two-decade pension battle at the Supreme Court, have now escalated their fight by lodging a complaint with the UK’s Financial Conduct Authority (FCA) over alleged concealment of liabilities by the bank and its London-based parent group.

In a letter addressed to FCA Chief Executive Nikhil Rathi, the retirees accused Standard Chartered of deferring recognition of pension obligations despite losing repeatedly in Kenyan courts, and only booking a Sh7 billion provision after the Supreme Court’s September 5, 2025 judgment.

“Despite clear judicial rulings, the Bank delayed recognition of its pension liabilities until after the Supreme Court’s decision, when it belatedly booked a KES 7 billion provision and issued a 25% profit warning in September 2025.”

“For years, this matter has been managed jointly between the Kenya Subsidiary Legal team and Group Legal in London, making it implausible that Group executives were unaware of the serious financial, legal, and reputational risks this dispute presented to the Group especially after a string of adverse rulings.”

The Supreme Court ruling effectively ended legal challenges around the 629 retirees, affirming earlier tribunal and appellate decisions that found the bank unlawfully shifted pensioners from a Defined Benefit to a Defined Contribution scheme in 1999 and diverted over Sh1.1 billion from the fund.

Following the ruling, the lender began verification and payout processes for the 629 members but simultaneously issued a profit warning, projecting at least a 25 percent dip in 2025 earnings due to the multi-billion-shilling liability.

However, the non-629 members claim they were similarly disadvantaged by the 1999 scheme changes but remain excluded from compensation.

Their representatives, including Davies Kajogu and Jane Chege, argue that the bank’s own legal filings have acknowledged liability to them, contradicting its public stance.

The FCA complaint seeks a probe into whether Standard Chartered failed to disclose pension risks truthfully in past financial reports, potentially misleading investors.

The petition also calls for coordination with Kenya’s Central Bank and Retirement Benefits Authority to secure redress for the excluded pensioners.

If taken up, the complaint could expose Standard Chartered to cross-border regulatory scrutiny, with implications for both its financial disclosures and governance record.

Comments

Post a Comment

Popular posts from this blog

The financial mismanagement at ENOOMATASIANI GIRLS SECONDARY SCHOOL has been brought to light.

Image
  The most recent report from the Auditor General for the fiscal year ending June 30, 2024, has uncovered mismanagement at Enoomatasiani High School under the administration of Principal Tabitha Mbabu (TSC No. 224359). There are calls for her transfer over mismanagement and not very impressive academic excellence under her leadership. As per the report, the statement of receipts and payments indicates that the school's fund income from parents' contributions amounts to Kshs. 89,627,445, as detailed in Note 4 of the financial statements. An examination of the school's fee structure during the review period revealed that the school fees were raised beyond the limits set by the Ministry of Education (MOE), resulting in an unauthorized increase in annual fees of Kshs. 15,000 for form one students and Kshs. 18,000 for students in other classes. This action contravenes Regulation 44 of the Basic Education Regulations, 2015, which stipulates that no public school or instit...
Read more

The Auditor General has declared Jomo Kenyatta Girls High School to be technically insolvent due to poor management and substantial outstanding bills

Image
A report from the Auditor General for the period ending June 30, 2024, has issued serious recommendations regarding the management led by Principal Jane Mureithi, who took charge on May 23, 2022. The report indicates that the school is technically insolvent and is operating at a deficit, leading to significant pending bills. The report reveals that the statement of assets and liabilities shows a current liabilities balance of Kshs. 27,728,458, which surpasses the current assets balance of Kshs. 22,763,448, resulting in a negative working capital of Kshs. 4,965,010. Consequently, the school is technically insolvent, and its capacity to maintain its services relies on support from the Government and its creditors. However, this significant uncertainty has not been reflected in the financial statements. Under these circumstances, the school may struggle to fulfill its short-term financial obligations as they become due. The statement of assets and liabilities indicates an accounts...
Read more

The auditor general has disclosed extensive corruption at Bura Girls High School, prompting stakeholders to demand the principal's transfer

Image
  The latest report from the auditor general for the fiscal year ending June 30, 2024, highlights considerable mismanagement and corruption under Principal Eunice Wambua's administration. Stakeholders are calling on the Ministry of Education and the Teachers Service Commission to take immediate action and transfer her, as she has exceeded her effectiveness and has not delivered significant academic achievements or infrastructure improvements. She faces allegations of incompetence, authoritarian behavior, coercion, and intimidation towards teachers with differing views. Moreover, she is reported to occasionally manipulate Parent Association members to enable unlawful activities. Suppliers and contractors are also experiencing delays in payment. The statement of assets and liabilities indicates an accounts receivable balance of Kshs.30,937,580, as detailed in Note 13 of the financial statements. Of this amount, Kshs.30,879,980 pertains to fees, while Kshs.57,600 relates to rent...
Read more