The Central Bank of Kenya (CBK) has announced the closure of the Bank of Kigali (BoK) Representative Office in Kenya, effective April 2nd, 2024.
A representative office allows foreign banks to carry out non-transactional operations in the country including marketing or creating relationships with a market.
In most instances, foreign banks set up representative offices in a country they intend to set up operations in the future. Through the Representative Office, foreign banks can connect with its customers in a country, but they are prohibited from carrying out the primary functions of a bank.
According to a statement by the CBK, the closure follows a strategic decision by BoK to focus more on digital service delivery channels.
“The voluntary termination of BoK’s presence in Kenya follows a strategic decision taken by the Bank of Kigali Group Plc (BoK’s parent company) to focus more on digital service delivery channels,” the statement read in part.
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In a statement, the bank’s parent company, BK Group Plc, confirmed its exit from Kenya noting that the decision was made in support of the group’s commitment to optimizing operations as part of its digital transformation strategy.
However, according to the statement, BK Group Plc. will maintain its cross listing on the Nairobi Securities Exchange (NSE) and continue serving its clients in Kenya through its digital channels.
“We are dedicated to ensuring a smooth transition for our banking clients during this process and hereby assure them of continuity in service,” BK Group Plc noted in a statement on Friday.
“We encourage our banking clients to get in touch with their relationship managers or reach out to Bank of Kigali’s customer service and operations departments for assistance and to address any inquiries regarding this transition.”
About BoK Bank
BoK, headquartered in Kigali, is a banking institution founded in 1966 and it is licensed and supervised by the National Bank of Rwanda.
The Government of Rwanda is the majority shareholder in the bank while the remaining portion is held between institutional and retail shareholders. Bank of Kigali is also cross listed on the Nairobi Securities Exchange (NSE).
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Despite securing the rights to set up its representative offices in Kenya over a decade ago, BoK has over the time ruled a possibility of launching full operations in Kenya.
Speaking in an interview in 20218, Diane Karusisi, the CEO of the bank assured that its focus was to satisfy the needs of its local market in Rwanda before expanding to other markets in the region.
In her remarks, Karusisi said the Kenyan banking sector was already highly competitive and hence the decision to hold back the move to Kenya.
