Key Takeaways:
- Bank Al-Habib Limited of Pakistan (BAHLP) has ceased its Kenyan operations.
- This move follows a directive from the Central Bank of Kenya.
- The bank’s representative office will continue with non-business activities until all obligations are met.
The Star, a Kenyan newspaper, has reported that Bank Al-Habib Limited of Pakistan (BAHLP) has decided to shut down its Kenyan operations. The bank had opened a representative office in Nairobi four years ago in 2020, aiming to tap into the lucrative international transaction business. This venture marked BAHLP’s first investment in Africa.
The closure follows a directive from the Central Bank of Kenya, issued late last year. “Notice is hereby given that on October 27th, 2023, BAHL Representative Office received a letter from the Central Bank of Kenya, guiding the way forward for winding up its operations,” the bank stated in a notice. The notice also mentioned that June 30th, 2024, was the last day of their operations.
Despite ceasing business activities, the representative office will remain operational to handle non-business tasks until all obligations are fully discharged, as required by the Central Bank of Kenya. A representative office, unlike a full-fledged bank, does not offer commercial banking services but focuses on research, marketing, and acting as a liaison for the parent bank and its affiliates.
In the notice, BAHLP expressed sincere appreciation to the Central Bank of Kenya and all their banking partners for the support and assistance provided during their time in Kenya.
During its operations in Kenya, BAHLP had to use the name BAHL instead of its parent name to avoid confusion with two other Kenyan banks that also had “Habib” in their names. BAHLP operates in several other countries, including Bahrain, the Seychelles, China, Turkey, and the United Arab Emirates.
The bank has seen significant growth, with its website reporting a 115 percent year-on-year profit increase as of January this year, compared to the previous year’s profit of Sh25.65 billion.
