The Central Bank of Kenya (CBK) has announced the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL Representative Office in Kenya.
BAHL’s exit from Kenya, effective 15th May, 2025, follows a strategic decision by BAHL to rationalise its foreign operations. BAHL was authorized by CBK to establish a Representative Office in Kenya on 9th April 2018. Central Bank of Kenya said it too the decision in line with Section 43 of the Banking Act
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.
BAHL’s closure is a strategic shift aimed at consolidating its international operations. The decision, officially communicated on 5th May, 2025, came after regulatory approval from the Central Bank of Kenya (CBK) on 30th April, 2025. Bank Al Habib was granted authority by CBK in April 2018 to open a representative office in Kenya.
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This office operated primarily to facilitate corporate and correspondent relationships, engage with regulatory stakeholders, and explore business development opportunities without directly taking deposits or offering banking services locally.
According to the statement, the closure follows a strategic global review where the bank is now pursuing a broader restructuring initiative, driven by efficiency, rationalisation, and improved resource allocation. The exit from Kenya aligns with BAHL’s plans to streamline its international presence and concentrate on higher-growth markets and core banking jurisdictions. In its closure notice in May, BAHL added assurances that it would honour all legal obligation before exit, and appointed Oraro & Company Advocates to handle any further queries or legal matters relating to the closure.
BAHL’s decision comes amid a broader wave of restructuring by international banks operating in Kenya and other emerging markets. 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 market position.
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.
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