The Central Bank of Kenya (CBK) has announced the cancellation of the authority granted to Bank Al Habib Ltd (BAHL) of Pakistan to operate a Representative Office in Kenya.
CBK said the decision is pursuant to Section 43 of the Banking Act, which outlines the conditions under which a bank or financial institution incorporated outside Kenya, that does not intend to conduct banking or financial business in Kenya, can establish a representative office in Kenya.
“BAHL’s exit from Kenya, effective May 15, 2025, follows a strategic decision by BAHL to rationalize its foreign operations,” read the notice in part.
The bank was authorized by CBK to establish a Representative Office in Kenya on April 9, 2018.
CBK Announces Closure of Bank Al Habin Representative Office in Kenya
BAHL is a commercial bank headquartered in Karachi, Pakistan, offering retail and corporate banking, as well as international trade finance services.
The Representative Office in Kenya served as a marketing and liaison office for the parent bank and its international affiliates.
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The BAHL- Representative Office has since operated in compliance with applicable legal and regulatory requirements.
This comes after Habib Bank announced earlier in May that it would close its operations in Kenya following approval by CBK.
“BAHL hereby notifies its customers, the general public, stakeholders, and all interested parties that BAHL shall close down its Representative Office in Kenya with effect from May 15, 2025,” read part of the statement.
“This follows approval from the Central Bank of Kenya (CBK) on April 30, 2025, in line with the Banking Act (Cap. 488, Laws of Kenya) and Prudential Guidelines issued thereunder.”
Additionally, Al-Habib noted that the closure follows a strategic review undertaken by the bank’s Board of Directors.
It also stated that it was part of a broader global restructuring initiative aimed at consolidating international operations and enhancing overall operational efficiency.
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While BAHL’s direct presence in Kenya will end, the bank may continue its involvement in the country indirectly through correspondent banking relationships and partnerships in trade finance and corporate banking.
Foreign Representative Offices Limited to Liaison Roles
According to CBK, representative offices of foreign banks only serve as marketing and liaison offices for their foreign parent banks and affiliates and are not permitted to undertake banking business.
With increasing regulatory requirements and shifts in global capital allocation, foreign banks are rethinking their footprints across emerging markets.
Kenya remains an attractive market, but high competition, digital disruption, and local licensing costs have prompted some global lenders to either downscale or exit.
Recent years have also seen banks like SBM Kenya and I&M Bank acquiring and consolidating other players to strengthen their market position.
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