NAIROBI, Kenya, Oct 2 – A group of 629 former employees of Standard Chartered Bank Kenya, who recently won a two-decade pension battle at the Supreme Court, have now escalated their fight by lodging a complaint with the UK’s Financial Conduct Authority (FCA) over alleged concealment of liabilities by the bank and its London-based parent group.
In a letter addressed to FCA Chief Executive Nikhil Rathi, the retirees accused Standard Chartered of deferring recognition of pension obligations despite losing repeatedly in Kenyan courts, and only booking a Sh7 billion provision after the Supreme Court’s September 5, 2025 judgment.
“Despite clear judicial rulings, the Bank delayed recognition of its pension liabilities until after the Supreme Court’s decision, when it belatedly booked a KES 7 billion provision and issued a 25% profit warning in September 2025.”
“For years, this matter has been managed jointly between the Kenya Subsidiary Legal team and Group Legal in London, making it implausible that Group executives were unaware of the serious financial, legal, and reputational risks this dispute presented to the Group especially after a string of adverse rulings.”
The Supreme Court ruling effectively ended legal challenges around the 629 retirees, affirming earlier tribunal and appellate decisions that found the bank unlawfully shifted pensioners from a Defined Benefit to a Defined Contribution scheme in 1999 and diverted over Sh1.1 billion from the fund.
Following the ruling, the lender began verification and payout processes for the 629 members but simultaneously issued a profit warning, projecting at least a 25 percent dip in 2025 earnings due to the multi-billion-shilling liability.
However, the non-629 members claim they were similarly disadvantaged by the 1999 scheme changes but remain excluded from compensation.
Their representatives, including Davies Kajogu and Jane Chege, argue that the bank’s own legal filings have acknowledged liability to them, contradicting its public stance.
The FCA complaint seeks a probe into whether Standard Chartered failed to disclose pension risks truthfully in past financial reports, potentially misleading investors.
The petition also calls for coordination with Kenya’s Central Bank and Retirement Benefits Authority to secure redress for the excluded pensioners.
If taken up, the complaint could expose Standard Chartered to cross-border regulatory scrutiny, with implications for both its financial disclosures and governance record.
