Bank Al Habib Limited (BAHL) has officially closed its representative office in Nairobi, Kenya, following approvals from both the State Bank of Pakistan and the Central Bank of Kenya. The closure, effective May 15, 2025, marks the end of BAHL’s four-year presence in East Africa.
The representative office, established in 2020, was BAHL’s first venture into the African market. It primarily engaged in marketing, research, and liaison activities, without offering direct banking services. The decision to shut down the office aligns with BAHL’s broader strategic objectives and is not expected to significantly impact its overall financial position.
The closure follows a directive from the Central Bank of Kenya issued in late 2023, outlining the procedures for winding up operations. BAHL has expressed appreciation to the Central Bank of Kenya and its banking partners for their support during its tenure in the country. The bank will continue to fulfill all compliance requirements until the final closure is completed.
Despite the closure, BAHL remains a significant player in the global banking sector, with operations in Bahrain, the Seychelles, China, Turkey, and the United Arab Emirates. The bank continues to focus on strengthening its presence in these regions while reassessing its international strategy.
In its latest financial results for Q1 2025, BAHL reported a profit after tax of Rs10.72 billion, marking a 4.6% increase compared to the same period last year. This growth was driven by a 7.45% rise in non-markup income, which offset a decline in net interest income. The bank’s earnings per share improved to Rs9.65 from Rs9.22 in the previous year.
BAHL’s strategic decisions, including the closure of its Kenyan office, reflect its commitment to optimizing operations and focusing on markets that align with its long-term objectives. The bank’s leadership continues to prioritize sustainable growth and value creation for its stakeholders.