The Central Bank of Kenya (CBK) has officially revoked the operating licence of Bank Al-Habib Ltd (BAHL) following the bank’s strategic decision to exit the Kenyan market. The cancellation, which took effect on May 15, 2025, was announced in a statement issued by CBK on June 30, 2025.
BAHL, headquartered in Karachi, Pakistan, had operated a representative office in Nairobi since April 9, 2018, after receiving approval from the Kenyan financial regulator. The office functioned primarily as a liaison and marketing outpost, linking the parent bank with clients and partners in Kenya and the broader East African region. It did not undertake core banking functions such as accepting deposits or issuing loans.
“The Central Bank of Kenya announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL Representative Office in Kenya, pursuant to Section 43 of the Banking Act,” read part of the statement from the regulator.
CBK clarified that BAHL’s exit was not driven by any compliance or regulatory shortcomings but was rather a strategic move to streamline the bank’s international operations. This closure marks the end of the bank’s physical presence in East Africa, as the Nairobi office was its sole representation in the region.
Founded in Pakistan, Bank Al-Habib is known for offering a wide range of services including retail and corporate banking, treasury operations, and international trade finance. The closure of the Kenyan representative office aligns with the bank’s broader strategy to consolidate its foreign operations amid shifting global market dynamics.
CBK reassured stakeholders that the exit had been conducted in accordance with all relevant legal and regulatory frameworks. It emphasized that BAHL’s departure would not impact the stability or functioning of Kenya’s financial sector.
The regulator further stated that it remains committed to maintaining a sound and vibrant banking sector that supports economic growth while adapting to evolving market realities. The departure of BAHL underscores the dynamic nature of international banking and the strategic recalibrations financial institutions must undertake in response to global operational needs.
