Standard Chartered Bank Kenya Limited has issued a warning that its earnings for 2025 are expected to fall sharply by about 25 per cent, with the bank projecting a significant contraction in profit after tax compared with the previous year.
The disclosure comes as the lender factors in the financial impact of a long-standing retirement benefits case, where a tribunal ruling has introduced fresh obligations that will weigh on its bottom line.
According to the institution's board chairperson Kellen Kariuki, the ruling requires additional payouts to be made to hundreds of appellants, expenses that will be recognised under international accounting rules as past service costs, directly affecting its annual performance.
In explaining the matter to shareholders, Kariuki stated, “SCBKL projects that net earnings/(Profit After Tax) for the year ending December 31, 2025 will be potentially 25 per cent lower than the net earnings for the year ended December 31, 2024, primarily due to the Judgment of the Retirement Benefits Appeals Tribunal Appeal No. 8 of 2021: Abdalla Osman & 628 Others vs. The Retirement Benefits Authority & 11 Others dated April 28, 2022...”
The announcement continued, “...and the directions in respect of the computations to be paid out to the Appellants issued by the Retirement Benefits Appeals Tribunal on May 22, 2025.”
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The bank emphasised that these obligations would be accounted for under IAS 19 Employee Benefits, reflecting the requirement to recognise past service costs. It added that the forecast is based on un-audited results to August 31, 2025, combined with projections through year-end.
The disclosure was issued under Regulation 14.5.7 of the Thirteenth Schedule of the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
To address concerns about its financial position, the lender assured shareholders and customers, stating, “We would like to reassure our clients and stakeholders that SCBKL is adequately capitalised to meet the anticipated obligations.”
Beyond the immediate challenge, the bank also reaffirmed its broader direction, pointing to its continued pursuit of a strategy centred on cross-border banking and wealth management under a sustainability agenda.
The audited financial results for 2025 will be published in the first quarter of 2026.
The disclosure signals a challenging year ahead for the lender, with tribunal-ordered obligations eroding profits, yet the bank has underscored that its capital strength and long-term strategy remain intact as it navigates the financial impact.
