CBK Shuts Down Bank Al-Habib’s Operations in Kenya
The Central Bank of Kenya (CBK) has officially announced that it has revoked the license granted to Bank Al-Habib Ltd (BAHL) of Pakistan, effectively closing down its operations in Kenya.
According to a statement released by the regulator on Monday, the decision was reached after Bank Al-Habib itself chose to restructure its international presence, which included withdrawing from the Kenyan market. The move is part of the bank’s broader strategy to streamline its foreign operations.
“The Central Bank of Kenya (CBK) announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL,” the statement read.
The cancellation concerns BAHL’s Representative Office in Kenya and has been carried out in accordance with Section 43 of the Banking Act. CBK stated that the bank’s exit from Kenya took effect on May 15, 2025, and was not related to any wrongdoing or violation of banking laws, but rather a planned and voluntary exit.
Bank Al-Habib, which is headquartered in Karachi, Pakistan, had received permission from CBK to set up its Kenyan Representative Office on April 9, 2018.
This office functioned as a marketing and coordination center for the parent bank and its global branches.
However, due to its status as a representative office, it was not permitted to engage in actual banking operations such as accepting deposits or issuing loans.
BAHL is recognized as one of Pakistan’s top private commercial banks. It operates more than 1,000 branches throughout Pakistan and maintains a strong international footprint, with offices in several major financial centers including Bahrain, the United Arab Emirates, Turkey, China, and the United Kingdom.
Notably, the Kenyan Representative Office was its only operation within the East African region.
The Central Bank emphasized that BAHL’s decision to exit the Kenyan market was handled properly and did not involve any form of financial irregularity, non-compliance, or regulatory concern.
The closure followed due process and reflects a strategic business move by the bank.
In a separate but related announcement, the CBK also revealed that it is lifting the long-standing suspension on the licensing of new banks in Kenya. This moratorium had been in place since November 17, 2015.
The regulator announced in a press release dated April 16 that the suspension will officially come to an end starting July 1, 2025.
The original purpose of the freeze was to allow for reforms and improvements in the governance, management, and operational structures of the banking sector, which had faced significant challenges at the time.
CBK explained that the temporary halt in issuing new bank licenses was a necessary step to ensure stability and build a stronger and more resilient banking system in Kenya.
With these goals achieved, the central bank now believes the market is ready for new entrants under a more robust regulatory framework.
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