Karachi, May 6, 2025 – Bank Al Habib Limited (BAHL), one of Pakistan’s prominent commercial banks, has officially announced the closure of its representative office in Kenya. The decision, which comes after receiving requisite approvals from both the State Bank of Pakistan (SBP) and the Central Bank of Kenya (CBK), marks a strategic adjustment in the bank’s international operations.
In a formal notification submitted to the Pakistan Stock Exchange (PSX) on Tuesday, BAHL stated that it had completed the necessary procedural steps to shut down its Kenyan presence. According to the bank’s statement, “We write to inform you that, subsequent to the State Bank of Pakistan’s in-principle approval for the closure of Bank AL Habib Limited’s representative office in Kenya, we have also received approval from the Central Bank of Kenya for the closure of the aforesaid representative office.”
The bank further confirmed that the Central Bank of Kenya has instructed them to surrender the office’s license upon fulfilling all compliance requirements. BAHL emphasized that this move is aligned with its broader strategic direction and does not pose any material impact on its overall financial health or operational stability.
“This decision is in line with the bank’s strategy, and it will not have any material impact on the overall operating and financial position of the bank,” the statement added.
The representative office in Kenya primarily served as a liaison and market exploration channel, helping BAHL evaluate international expansion opportunities. Its closure signals a shift in the bank’s global outreach approach, possibly indicating a refocusing of efforts on other more strategically aligned regions or reinforcing domestic operations.
Incorporated in Pakistan on October 15, 1991, as a public limited company under the now-repealed Companies Ordinance of 1984, Bank Al Habib operates as a scheduled commercial bank. Over the decades, it has built a robust reputation in Pakistan’s financial sector, offering a wide range of retail, corporate, and Islamic banking services.
Despite the closure of its Kenya office, BAHL remains financially solid. For the first quarter ending March 31, 2025, the bank reported a net interest income of Rs33.71 billion. Though this represents a decline from Rs37.21 billion during the same period last year, the bank’s basic earnings per share from continuing operations rose to Rs9.65, compared to Rs9.22 in the previous year—highlighting consistent earnings stability.
The closure also reflects the increasingly adaptive strategies banks are adopting in response to global economic shifts, regulatory environments, and evolving business models. While Africa remains a promising frontier for financial services, Pakistani banks like BAHL are reassessing regional priorities to ensure optimal resource allocation and risk management.
Bank Al Habib’s exit from Kenya does not signal a retreat from international ambitions but rather a recalibration in line with changing economic and operational dynamics. The bank continues to focus on strengthening its core business, innovating in digital banking, and exploring opportunities that align more closely with its long-term growth plans.
As the banking landscape undergoes rapid transformation, strategic decisions like this underscore the importance of agility, focus, and alignment with shareholder interests in an increasingly competitive global market.