Bank Al-Habib of Pakistan to Close Its Kenyan Office as CBK Cancels License
The Central Bank of Kenya (CBK) has officially revoked the license it had granted to Pakistan’s Bank Al-Habib Ltd (BAHL), effectively ending the bank’s operations in Kenya.
In a statement issued on Monday, CBK confirmed that BAHL made the strategic choice to shut down its Kenyan Representative Office as part of efforts to streamline its international operations. The office will cease operations on May 15, 2025.
“The Central Bank of Kenya has cancelled the license that allowed Bank Al-Habib Ltd to operate a Representative Office in Kenya,” read part of the statement.
Bank Al-Habib, based in Karachi, Pakistan, first received CBK approval to open a Representative Office in Nairobi on April 9, 2018. The office mainly served as a marketing and customer support center, linking Kenyan clients to the bank’s global services. However, under Kenyan law—specifically Section 43 of the Banking Act—such offices are not permitted to carry out full banking services like accepting deposits or issuing loans.
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Bank Al-Habib is one of Pakistan’s largest private banks, with over 1,000 branches across the country. It also has a global footprint, with operations in Bahrain, the United Arab Emirates, Turkey, China, and the United Kingdom. The Nairobi office was its only location in East Africa.
CBK emphasized that the closure was voluntary and not due to any wrongdoing or regulatory issues.
In a separate update, CBK also announced the lifting of the freeze on licensing new banks in Kenya, a restriction that had been in place since November 17, 2015. The moratorium officially ends on July 1, 2025.
The freeze had been introduced to give the banking sector time to recover from a period of management and governance challenges. According to CBK, the move was necessary to strengthen the financial system and ensure better oversight.
With the freeze now lifted, Kenya’s banking sector may soon see the entry of new players, opening the door for more competition and customer choices.
Bank Al-Habib of Pakistan to Close Its Kenyan Office as CBK Cancels License
