The Central Bank of Kenya (CBK) has announced the closure of the Bank of Kigali (BoK) Representative Office in Kenya, effective April 2nd, 2024. This move, termed as a voluntary termination by CBK, follows a strategic decision made by BoK’s parent company, Kigali Group Plc.
The closure aligns with the parent company’s decision to prioritise digital service delivery channels. “The voluntary termination of BoK’s presence in Kenya follows a strategic decision taken by the Bank of Kigali Group Plc (BoK’s parent company) to focus more on digital service delivery channels,” the statement reads.
In most instances, foreign banks set up representative offices in a country they intend to set up operations in the future. Through the Representative Office, foreign banks can connect with its customers in a country, but they are prohibited from carrying out the primary functions of a bank.
CBK authorised the establishment of the Bank of Kigali’s Representative Office in Kenya on February 12, 2013, making it the first foreign bank from the East African Community to be granted authority to operate a Representative Office in Kenya.
The Government of Rwanda holds the majority stake in the bank, with the rest owned by institutional and retail shareholders. Bank of Kigali is also listed on the Nairobi Securities Exchange (NSE).
The bank primarily operates in personal banking, business banking, and micro-lending. It currently operates forty branches in Rwanda and is publicly traded on the Rwanda Stock Exchange.
