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Court halts StanChart’s Sh7bn pension Payout over lawyer fees dispute

NAIROBI, Kenya, Sept 24 – The High Court has issued orders stopping Standard Chartered Bank from releasing Sh7 billion in pension dues owed to 629 retirees, pending the outcome of a legal costs dispute.

The orders, granted under a certificate of urgency by Justice Moses Ado, followed an application filed by lawyer Ruth Wanyonyi.
Wanyonyi, who represented the retirees in a protracted legal battle, sought to have at least half of the decretal amount withheld until her firm’s legal fees are settled.

“Pending further directions on October 2, 2025, a temporary order of injunction is hereby issued restraining the Interested Parties from implementing the Public Notice of September 12, 2025,” the order reads in part.

“The court further directs that the matter be mentioned for further directions on October 2, 2025,” the ruling stated.

The dispute arises from RBAT Appeal No. 8 of 2021, Abdalla Osman & 628 Others vs Retirement Benefits Authority & 5 others, where the retirees successfully challenged the handling of their pension claims.

The Retirement Benefits Appeals Tribunal (RBAT) had ruled in their favor, ordering the release of billions in benefits.

However, Wanyonyi moved to court, arguing that her costs, arising from multiple proceedings, including Supreme Court Petition No. E011 of 2025, Court of Appeal Civil Appeal No. E847 of 2023, and Nairobi High Court JR Misc No. E110 of 2022 should be settled before the full disbursement of the pension funds.
The injunction now leaves hundreds of pensioners in limbo as the legal row drags on.

The High Court’s decision effectively suspends Stanchart’s compliance with the September 12 public notice to pay out the dues, pending resolution of the costs matter.

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