Stanchart Kenya issued a profit warning, projecting that net profits for the year ending 31st December 2025 will be at least 25 per cent lower compared to last year due to costs from a pension tribunal judgement. Shares of Stanchart Kenya fell by Sh15, or 4.9%, to Sh291.25 on Tuesday
“Standard Chartered Bank Kenya Limited projects that net earnings for the year ending 31 December 2025 will be potentially 25 per cent lower than the net earnings for the year ended 31 December 2024, primarily due to the judgement of the Retirements Benefits Appeals Tribunal Appeal No. 8 of 2021: Abdalla Osman & 628 Others vs The Retirement Benefits Authority & 11 Others dated 28 April 2022 and the directions in respect of the computations to be paid out to the appellants issued by the Retirement Benefits Appeals Tribunal on 22 May 2025,” the company said
Earlier this month, Stanchart Kenya lost its bid to block enforcement of the Retirement Benefits Appeals Tribunal judgement (Appeal No. 8 of 2021), which ordered the bank to recalculate pension benefits for 629 former employees using the correct actuarial factors, after the Supreme Court struck out its petition for lack of jurisdiction.
The tribunal's original judgment found that Standard Chartered Bank Kenya had applied incorrect actuarial calculations in determining pension payouts for the affected retirees. The bank sought to block enforcement of the order through the Supreme Court petition, which was dismissed on procedural grounds.
In a notice last week, the company invited the 629 former employees to submit pension claims, committing to settle them once verified.
The profit warning piles further pressure on the company, which is also battling a Sh33 billion claim in a suit against Manchester Outfitters and two others. The case, heard at the Supreme Court in July, is currently awaiting judgment.
Stanchart Kenya reported a 21 per cent drop in its half year earnings to Sh8.09 billion for the six-month period ended 30th June 2025 and maintained its interim dividend at Sh8 per share.
