NAIROBI, Kenya, Sept 5 — The Supreme Court of Kenya has dismissed an application by Standard Chartered Bank Kenya Limited seeking to halt a Court of Appeal (CoA) ruling that directed it to pay millions of shillings in pension dues owed to former employees.
In a bench ruling, Supreme Court Vice President and Deputy Chief Justice Philomena Mwilu said the apex court could not invoke Article 163(4)(a) of the Constitution on the basis of mere allegations of constitutional violations.
Article 163(4)(a) grants the Supreme Court powers to hear appeals from the CoA only in cases involving interpretation or application of the Constitution.
“Consequently, even though it was indicated that the judicial review application was also brought pursuant to Articles 25, 47, 50, 165(6) (7) and 169(2), it neither involved the interpretation or application of these constitutional provisions, nor did the superior courts below interpret or apply the Constitution or take a constitutional trajectory. On the basis of the foregoing, it is clear to us that this Court lacks jurisdiction to hear and determine the intended appeal and the application for stay attendant thereto,” Mwilu stated.
The ruling marks the latest development in a protracted dispute between the bank and a group of retrenched employees over pension obligations.
The case began when the Retirement Benefits Authority (RBA) dismissed claims by the retirees, prompting them to escalate the matter to the Tribunal. The Tribunal ruled in their favour, directing that their pension benefits be correctly computed and paid.
StanChart challenged the ruling in the High Court, which dismissed its petition. The lender then appealed, arguing that the Tribunal had acted without jurisdiction by failing to take oral evidence and by exceeding its authority when ordering computation of pension benefits.
The CoA, however, upheld the Tribunal’s decision, noting that it was within its mandate to rely on written submissions and exercise procedural flexibility. The appellate court also found that the High Court’s ruling was sound, since the appeal was limited to procedural issues rather than a merit review of the Tribunal’s determination.
Additionally, the CoA rejected claims that the Tribunal’s directives violated fair administrative action, emphasizing that StanChart had consented to its procedural approach and actively participated in the proceedings.
A key highlight of the appellate ruling was its emphasis on trustee duties in pension fund management. The court stressed that trustees must administer pension funds strictly in line with the law and the trust deed governing benefits.
As a result, the Tribunal’s directive compelling the bank to compute and disburse the pension dues of the retrenched workers was upheld, a position now reinforced by the Supreme Court’s dismissal of StanChart’s appeal.
