Standard Chartered Bank Kenya Limited (SCBK) has issued a profit warning, cautioning shareholders that its net earnings for the financial year ending December 31, 2025, are likely to fall by at least 25 percent compared to the previous year.
In a notice dated September 15, 2025, the lender attributed the expected decline primarily to a ruling by the Retirement Benefits Appeals Tribunal relating to pension liabilities.
The case, Abdalla Osman & 628 Others vs. The Retirement Benefits Authority & 11 Others, resulted in directions requiring additional computations and payouts to the appellants. The final orders were issued by the tribunal on May 22, 2025.
According to SCBK, the payments will impact the bank’s overall costs in line with IAS 19 Employee Benefits, which deals with the accounting of past service costs. The bank explained that the one-off adjustment will affect its profitability for 2025 but will not compromise its long-term financial health.
“This profit warning is based on the unaudited financial results of SCBK for the period ended August 31, 2025, factoring in the forecasts to year-end,” said Board Chairperson Kellen Kariuki.
“We would like to reassure our clients and stakeholders that SCBK is adequately capitalised to meet the anticipated obligations,” she added.
SCBK emphasized that despite the temporary hit to earnings, its capital position remains strong, enabling it to absorb the impact of the tribunal ruling. The lender also reaffirmed its commitment to growth, highlighting its strategy of combining differentiated cross-border banking capabilities with a focus on wealth management and sustainability.
Market analysts note that profit warnings are typically taken seriously by investors, as they can signal near-term pressure on dividends or share performance. However, the bank’s reassurance that the impact is a one-off expense could help cushion investor concerns.
The announcement comes at a time when Kenya’s banking sector is navigating a challenging operating environment marked by elevated interest rates, tight liquidity and regulatory pressures. Despite this, SCBK has maintained a reputation as one of the most stable lenders in the market, known for its focus on corporate and institutional clients as well as premium retail banking services.
The bank is expected to release its audited financial results for the year ending December 31, 2025, in the first quarter of 2026. Investors and analysts will be watching closely to assess how the one-off pension liability costs have affected overall profitability and whether the bank’s earnings rebound in 2026.
Standard Chartered Bank Kenya is part of the global Standard Chartered Group, which operates in over 50 markets worldwide. The local subsidiary is listed on the Nairobi Securities Exchange (NSE) and is regulated by the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK).
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