In a strategic shift aimed at consolidating international operations, Bank Al Habib Limited (BAHL), headquartered in Pakistan, has announced the closure of its Representative Office in Kenya from May 15, 2025.
- •The decision, officially communicated on May 5, 2025, comes after regulatory approval from the Central Bank of Kenya (CBK) on April 30, 2025.
- •Bank Al Habib was granted authority by CBK in April 2018 to open a representative office in Kenya.
- •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, 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.
