The Central Bank of Kenya (CBK) has announced the closure and cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL in Kenya.
In a statement shared by the regulator on Monday, it revealed that the development had been informed by the decision of the bank to rationalise its foreign operations and hence the exit from the Kenyan market.
"The Central Bank of Kenya (CBK) announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL," CBK stated.
''Representative Office in Kenya, pursuant to Section 43 of the Banking Act. BAHL's exit from Kenya, effective May 15, 2025, follows a strategic decision by BAHL to rationalise its foreign operations.''
The Karachi, Pakistan-based commercial bank BAHL, which was granted permission by CBK to open a Representative Office in Kenya on April 9, 2018, provides corporate and retail banking services in addition to international trade finance.
The Representative Office in Kenya served as a marketing and liaison office for the parent bank and its international affiliates.
Bank Al-Habib Ltd is one of Pakistan’s leading private commercial banks. It operates over 1,000 branches across Pakistan and has an international presence in key financial hubs, including Bahrain, the UAE, Turkey, China, and the UK. Its Kenya office was its only representative operation in East Africa.
Under Section 43 of the Banking Act, a representative office is not allowed to engage in core banking activities.
CBK’s cancellation follows proper procedure, as the exit is voluntary and not tied to any regulatory breach or financial misconduct.
Meanwhile, in related developments, CBK lifted the temporary suspension that the government had put in place on the licensing of new banks in the country.
In a press statement released on April 16, CBK confirmed that the moratorium that had been in place since November 17, 2015, will be lifted effective tomorrow, July 1, this year.
The temporary suspension was imposed against a backdrop of governance, management, and operational challenges in the banking sector.
Further, it was intended to provide space for the strengthening of the Kenyan banking sector, according to CBK.
