The Central Bank of Kenya (CBK) has formally revoked the authorization granted to Pakistan-based Bank Al-Habib Ltd (BAHL) to operate a representative office in Nairobi, marking the lender’s official exit from the Kenyan market.
According to a statement issued by CBK on Monday, the decision to wind down operations in Kenya was initiated by BAHL as part of a broader strategy to streamline its international footprint.
“The exit, effective May 15, 2025, reflects the bank’s internal restructuring plan aimed at rationalising its foreign operations,” CBK noted.
BAHL, a major player in Pakistan’s banking sector with a network of over 1,000 branches and international offices in markets like the UAE, Bahrain, Turkey, the UK, and China, had entered Kenya in 2018 after receiving approval from the CBK. However, the Nairobi-based office functioned purely as a marketing and liaison branch, in line with Section 43 of Kenya’s Banking Act, which prohibits representative offices from conducting direct banking activities such as taking deposits or offering loans.
CBK clarified that the cancellation of BAHL’s authorization followed due process and was not related to any regulatory or compliance concerns.
In a separate but related development, CBK has also announced the lifting of a longstanding freeze on licensing new commercial banks in the country a moratorium that had been in place for several years. The move signals renewed momentum in Kenya’s financial services sector, opening the door for new entrants.
