The 629 former employees of Standard Chartered Bank Kenya will have to wait longer to access over Sh7 billion they won in a legal battle against their former employer, after a dispute with their lawyers over legal fees emerged.
High Court judge Moses Ado on September 23 issued an injunction halting the disbursement, preventing the bank, the Trustees of the Standard Chartered Kenya Pension Fund, or any other party from releasing the funds until the case is resolved.
The matter is scheduled for further directions on October 2.
“That in the meantime, a temporary order of injunction is granted in terms of prayer 2 of the application until then,” Justice Ado stated.
Lawyer Ruth Wanyonyi, representing Wanyonyi Muhia Advocates, said the firm had handled five cases for the retirees, including at the Retirement Benefits Appeals Tribunal, High Court, and Supreme Court.
She noted that the firm invested significant effort and resources to secure a successful outcome for their clients.
Ms Wanyonyi added that the firm is also involved in a new matter before the High Court, filed by the bank, and that no agreement had been reached on fees for the services provided.
She said the retirees published a notice on September 12 requesting the bank and pension scheme to submit documents for payment, after previously asking the law firm for details of the bank and scheme, which were provided.
The lawyer explained that even after the notice was issued, the firm approached the retirees to discuss temporarily suspending the notice until fees were agreed, but the proposal was declined.
Wanyonyi noted that her firm had filed its advocates’ bills for taxation and warned that failing to suspend the payment process could cause the firm substantial prejudice.
Earlier this month, the Supreme Court dismissed an attempt by Standard Chartered Bank and its pension fund to block the enforcement of a tribunal decision directing them to pay Sh7 billion to 629 former employees, removing one of the hurdles that had delayed the settlement of the pension dispute.
Even with the ruling, the pensioners will not access their money yet, since the High Court in Nairobi had already stopped the payment two months ago after the bank filed a fresh case, which is set for mention next week.
A five-judge bench led by Deputy Chief Justice Philomena Mwilu on Friday rejected the application for stay of execution, ruling that the court had no jurisdiction to grant the request.
The judges said the petition did not meet the threshold of constitutional interpretation.