StanChart Kenya anticipates a decrease in profits, attributed to a 7 billion shilling pension payment.
Standard Chartered Kenya Anticipates 25% Drop in 2025 Net Profit
Standard Chartered Bank Kenya Ltd, the Nairobi-based subsidiary of UK's multinational Standard Chartered Plc, has announced a projected 25% fall in its 2025 full-year net profit. This decline is attributed to a significant financial provision linked to a pension dispute.
In the year that ended in December 2024, the bank reported a net profit of Sh20 billion, marking a 45% increase. However, according to company forecasts, a 25% decline from this 2024 profit would see StanChart's 2025 net earnings fall to approximately Sh15 billion.
The anticipated decline is due to costs associated with the "Abdalla Osman and 628 Others versus the Retirement Benefits Authority & 11 Others" case and subsequent computational directions issued by the Retirement Benefits Appeals Tribunal in May 2025. The 629 appellants, pension case claimants in this dispute, have been asked to submit their information from September 22, 2025, at Almary Green Business Park, Nairobi, for verification and processing of their claims.
The bank has begun processing the payments, which will impact its overall costs in line with the IAS 19 accounting standard for employee benefits. The pension dispute requires a Sh7 billion payout.
Despite the projected decline, the bank's board has reassured stakeholders that it is adequately capitalized to meet the anticipated obligations. The board chairperson, Kellen Kariuki, signed the profit warning statement.
The profit warning is based on the bank's unaudited financial results for the period that ended in August 31, 2025, and internal forecasts to the year-end. UK banking multinational Standard Chartered Plc, which owns 75% of the Kenyan unit, last year took home about Sh12.75 billion in dividends from the dividend payout.
The bank's statement reiterated its commitment to its strategy of combining differentiated cross-border capabilities with leading wealth management expertise underpinned by sustainability. The announcement was made pursuant to Kenyan capital markets regulations requiring listed firms to issue profit warnings if they anticipate a significant deviation from past financial performance.
The Kenyan unit of Standard Chartered Bank Pension Fund has started collecting information from the 629 appellants to verify and process their claims. The bank has not specified a new date for the release of its audited financial results for the period that ended in August 31, 2025.
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