The Central Bank of Kenya (CBK) has cancelled the operating licence of Bank Al-Habib Ltd (BAHL) following the lender’s decision to exit the Kenyan market.

In a statement issued on Monday, June 30, 2025, CBK confirmed that the cancellation was effective from May 15, 2025.

The move was prompted by BAHL’s decision to close its Nairobi-based representative office as part of efforts to streamline its foreign operations.

“The Central Bank of Kenya announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate the BAHL Representative Office in Kenya, under Section 43 of the Banking Act,” read the statement.

BAHL has operated a representative office in Kenya since April 9, 2018, after receiving approval from the regulator.

The office served as a marketing and liaison point for the parent bank in Pakistan and its international affiliates. It did not carry out direct banking activities such as accepting deposits or issuing loans.

CBK clarified that the exit was a strategic decision by BAHL and not the result of any regulatory or compliance violations.

The bank, which is headquartered in Karachi, Pakistan, offers a range of services including retail and corporate banking, and international trade finance.

Its Kenyan outpost was its only representative office in East Africa.

CBK assured the public that the exit had been handled in line with legal and regulatory requirements and would not affect the broader financial sector.

Bank Licensing

On June 6, 2025, CBK  licensed 41 additional digital credit providers, raising the total number of approved firms to 126 out of more than 700 applications received since March 2022.

Despite the progress, about 574 applicants — roughly 82 per cent — are still awaiting approval. CBK said many have yet to submit the required documents and is urging them to do so to speed up the licensing process.

The regulator is working with other agencies, including the Office of the Data Protection Commissioner, to ensure compliance and protect consumers. The licensing push comes amid rising concerns over predatory lending, data misuse, and borrower harassment. New rules also prohibit listing loan defaulters for amounts below Ksh1,000.

Press Release: Closure of Bank Al-Habib Representative Office in Kenya pic.twitter.com/iVV6QmKw26

— Central Bank of Kenya (@CBKKenya) June 30, 2025