The Central Bank of Kenya (CBK) has revoked the operating licence of Bank Al-Habib Ltd (BAHL) after the bank opted to exit the Kenyan market.
In a statement released on June 30, 2025, CBK announced that the licence cancellation took effect on May 15, 2025.
“The Central Bank of Kenya announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate BAHL Representative Office in Kenya, pursuant to Section 43 of the Banking Act,” CBK said.
BAHL had maintained a representative office in Nairobi since April 9, 2018, following regulatory approval. The office functioned solely as a liaison and marketing hub for the parent bank in Pakistan and its global affiliates. It did not engage in banking operations such as accepting deposits or issuing loans.
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CBK clarified that BAHL’s decision to close the office was a strategic move and not prompted by any regulatory or compliance issues.
Headquartered in Karachi, Pakistan, BAHL provides a wide range of financial services, including retail and corporate banking, as well as international trade finance. The Nairobi office was its only presence in East Africa.
CBK assured the public that the closure was conducted in accordance with all legal and regulatory requirements and poses no risk to the stability of the financial sector.
Digital Lenders
On June 6, 2025, the Central Bank of Kenya (CBK) licensed 41 more digital credit providers, bringing the total number of approved firms to 126 out of over 700 applications submitted since March 2022.
Despite this progress, around 574 applicants approximately 82 percent are still awaiting approval. CBK noted that many of these firms have yet to submit the necessary documentation and urged them to comply to expedite the licensing process.
The regulator is collaborating with other agencies, including the Office of the Data Protection Commissioner, to ensure adherence to regulations and safeguard consumer interests. This licensing effort comes amid growing concerns about predatory lending practices, data misuse and borrower harassment. Notably, the new regulations prohibit credit providers from listing loan defaulters for amounts below Sh1,000.
