Standard Chartered Bank Kenya Plc has issued a profit warning, forecasting a 25% reduction in net earnings for the financial year ending 31 December 2025.
The anticipated decline follows a Supreme Court-backed ruling requiring the bank to pay approximately KES 7 billion in pension arrears to 629 former employees.
The payout stems from a long-running dispute over pension calculations linked to the bank’s transition from a defined benefit scheme to a defined contribution model. The Retirement Benefits Appeals Tribunal, High Court, and Court of Appeal all ruled in favour of the retirees, with the Supreme Court recently dismissing StanChart’s final appeal.
“This profit warning is based on unaudited financial results for the period ended 31 August 2025,” said Board Chairperson Kellen Kariuki. “We would like to reassure our clients and stakeholders that SCBK is adequately capitalised to meet the anticipated obligations.”
Despite the one-off impact, the bank affirmed its strong capital position and operational resilience. In 2024, StanChart Kenya posted a net profit of KES 20.1 billion. The revised projection for 2025 stands at KES 15.1 billion.
The bank has commenced the pension claims process at Almary Green Business Park in Nairobi, with verification scheduled to run weekdays from 22 September 2025.
“We have initiated a structured process to execute the judgment in accordance with legal requirements and are committed to maintaining open communication with affected pensioners,” the bank stated.
