A group of Standard Chartered Bank Kenya pensioners has accused the lender and trustees of its retirement funds of defying multiple court rulings, including a recent Supreme Court decision, by continuing to exclude them from pension adjustments owed since 1999.
The “non-629” members, who were part of the same pension scheme as the 629 retirees whose claims have already been upheld in court, say the bank has “systematically discriminated” against them despite the Supreme Court confirming earlier findings that the bank unlawfully applied the wrong actuarial factors when transitioning from a Defined Benefit to a Defined Contribution Scheme on January 1, 1999.
In a statement on 22nd September, the group alleged that senior bank executives, trustees, and the board of directors had acted in contempt of court through communications, financial disclosures, and notices that deliberately excluded the non-629 members.
“The Bank and Trustees have continued to act in a manner that disregards judicial authority, discriminates against non-629 members, and undermines the rule of law,” the pensioners’ representatives said.
They singled out the bank’s Chief Executive Officer, Chief Financial Officer, Chief Risk Officer, Head of Legal, and the trustees, accusing them of failing in their professional and fiduciary duties. Among the allegations are issuing a misleading profit warning, excluding the non-629 from official notices, and threatening pensioners with costs even before the Supreme Court ruling.
The pensioners have given the bank and trustees seven days to comply with the ruling by undertaking an independent valuation of the scheme as at January 1, 1999, recalculating balances with compounded returns, and issuing corrected communications to members, regulators, and shareholders.
Failure to do so, they warned, would see them return to court to seek committal of top executives and trustees to civil jail for contempt, alongside personal fines and liability for costs.
The dispute, which has spanned over two decades, is seen as a test case for the integrity of Kenya’s pension system. The Supreme Court earlier this month underscored the case as one of “profound public interest,” saying it affects not just retirees’ rights but also confidence in financial governance.
Regulators, including the Retirement Benefits Authority, Capital Markets Authority, Central Bank of Kenya, and the Institute of Certified Public Accountants of Kenya, were also urged to intervene.
“Every day of inaction compounds financial losses and deepens the anxiety of elderly pensioners who depend on these benefits for their dignity and survival,” the group said.
The bank is yet to issue a response.
