Why Is Another Global Bank Quitting Kenya?

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Pakistan’s Bank Al Habib Limited (BAHL) has announced it will officially close its Nairobi representative office by May 15, 2025, ending its direct operations in Kenya and exiting the African continent entirely.

This follows a global restructuring initiative by BAHL’s board, aimed at consolidating its international presence and enhancing operational efficiency.

Bank Al Habib’s Kenyan exit marks a reversal of its earlier ambitions to use Nairobi as a strategic entry point into East and Central Africa.

The representative office, opened in April 2018 with Central Bank of Kenya (CBK) approval, was intended to promote Sharia-compliant credit solutions and identify business opportunities in Kenya, Uganda, Tanzania, Rwanda, and the wider region.

Unlike a full-fledged branch, the Al Habib Nairobi office operated without a full banking license, and facilitated corporate and correspondent banking relationships and engaging with regulatory stakeholders. It did not directly accept deposits or provide local banking services.

The decision to close the office was approved by the CBK on April 30, 2025, under the Banking Act (Cap. 488), and publicly announced by BAHL on May 5. The bank emphasized that the move is part of a rationalization of its global operations and resource reallocation strategy.

BAHL stakeholders have been directed to address inquiries to its legal representatives, Oraro & Company Advocates.

Read: Two Banks in Kenya Risk CBK Crackdown If They Miss Sh10 Billion Capital Mark

This development comes amid a trend of international banks reassessing their footprints in emerging markets. Rwanda’s Bank of Kigali similarly exited Kenya to focus on digital banking.

Following these exits, only eight international banks continue to operate representative offices in the country. Despite their limited function, these offices facilitated transactions worth KSh413 billion in 2023, up from KSh365 billion in 2022.

BAHL is one of Pakistan’s largest banks, and is headquartered in Karachi. The bank has a network of over 1,107 branches domestically, and continues to operate in Bahrain, China, Türkiye, and the UAE. It mainly focuses on commercial banking, retail banking, retail brokerage, asset management, and currency exchange.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.