Bank Al Habib Pakistan Announces Closure of Its Representative Office in Kenya
In a strategic move aimed at consolidating and streamlining its international operations, Bank Al Habib Limited (BAHL), headquartered in Pakistan, has announced the closure of its representative office in Kenya effective May 15, 2025.
The decision was announced on May 5, 2025, following regulatory approval from the Central Bank of Kenya (CBK) on April 30, 2025. It is worth noting that Bank Al Habib had received authorization from the CBK in April 2018 to establish its representative office in Kenya. The office primarily focused on facilitating institutional relationships, correspondent banking, regulatory communication, and exploring business development opportunities, without offering local banking services or accepting deposits.
The decision follows a comprehensive review of the bank’s global strategy, as it seeks to implement a broader restructuring plan focused on enhancing efficiency, rationalizing operations, and optimizing resource allocation. This shift reflects the bank’s desire to streamline its international presence and concentrate on high-growth markets and core banking competencies.
In its statement, Bank Al Habib affirmed that the closure process will comply with all legal obligations, and it has appointed “Oraro & Company Advocates” to handle any inquiries or legal matters related to the closure.
This decision comes at a time when global banks are undergoing extensive restructuring in emerging markets, including Kenya, where regulatory requirements and shifts in capital allocation have intensified. Notably, several foreign banks have reassessed their presence in these markets, with banks such as SBM Kenya and I&M Bank acquiring others to strengthen their market share.
Despite the closure of its representative office in Kenya, Bank Al Habib will maintain an indirect presence in the Kenyan market through correspondent banking relationships and partnerships in trade finance and institutional banking.
