Standard Chartered Bank has moved to the Supreme Court to challenge a multi-billion-shilling case won by more than 600 pensioners, who accused the lender’s pension scheme of reducing their dues.
The bank said in its annual report for 2024 that its directors, having considered the Court of Appeal ruling and obtained appropriate legal advice, had filed an appeal at the country’s apex court.
The report added that the scheme has sought the suspension of the execution of the decision of the Retirement Benefits Authority Tribunal (RBAT).
On March 13, the tribunal had given the company one week to finalise and file a re-calculation report in compliance with the judgment obtained by the retired workers.
“On March 7, 2025, the Court of Appeal dismissed the Company’s appeal. The matter thus came up at the Retirement Benefits Authority Tribunal on March 13, 2025 where the company was ordered to finalise and file a re-calculation report in compliance with the tribunal’s judgment,” StanChart said in the report.
“The directors, having considered the Court of Appeal ruling and obtained appropriate legal advice, filed an appeal to the Supreme Court and for stay orders preventing execution on account of the Retirement Benefits Authority Tribunal directions.”
The pensioners sued their former employer and the scheme accusing them of reducing their lump sum payment.
They had sought payment of Sh9 billion as the balance of the lump sum pension benefits plus interest and a refund of Sh1.1 billion, which was paid to the bank as surplus.
Before moving to the High Court, the Retirement Benefits Authority Tribunal had ordered the lender to disclose to the 629 former employees lump sum benefits and the actuarial methods used to re-calculate their retirement benefits.
Standard Chartered was then ordered to factor in the cost of living adjustments, housing allowance, and future increases and payments.
The trustees of the scheme appealed against the decision, arguing that by directing them to compute the benefits, the tribunal abdicated its adjudicative role and delegated it to the trustees and the bank, yet they were parties in the proceedings.
The lender and the trustees of the scheme sought the suspension of the tribunal's verdict, saying it would expose it to a Sh30 billion settlement for its retired employees.
In 2018, the case was transferred from the High Court to the Employment and Labour Relations Court (ELRC).
The matter was subsequently referred to the Retirement Benefits Authority (RBA), which ruled in favour of the company in April 2021, by dismissing the claim.
The appellate court said the tribunal simply enforces the law and did not err in directing trustees to apply the law properly in its dealings.
“Given that state of the law with regard to the powers of the tribunal on appeal, we must conclude, with respect, that there is no substance in the complaint that the learned (High Court) judge erred in not quashing the tribunal’s judgment,” the appellate court said.
