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The Bank of Kigali (BoK), has halted operations in Kenya, due to a restructuring plan to focus more on digital banking.
In a statement, the Central Bank of Kenya (CBK) described it as a voluntary termination following a strategic decision taken by BoK’s parent company Kigali Group Plc.
CBK said via a statement,
“The Central Bank of Kenya (CBK) announces the cancellation of the authority granted to the Bank of Kigali (BoK) to operate a Representative Office in Kenya under Section 43 of the Banking Act, effective April 2, 2024,” CBK said. 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”.
BoK shutdown of operations in Kenya is coming after the establishment of the Bank Representative Office in Kenya on February 12, 2013.
BoK had initially sought to establish a presence, with the CBK in 2023 stating,
“The Bank of Kigali Limited through its Representative Office in Kenya seeks to explore potential business opportunities in the country with a view to evaluating the prospects for a long-term presence in Kenya.
The termination of BoK’s presence in Kenya follows a strategic decision taken by Bank of Kigali Group Plc (BoK’s parent company) to focus more on digital service delivery channels.
Reports reveal that lenders have been investing heavily in digital service delivery as branch visits decline. According to the Banking Industry Customer Satisfaction Survey (2023) by Kenya Bankers Association (KBA), the preference for digital and mobile banking channels for bank branch visits grew last year, with the preference for mobile banking rising to 69.9 percent from 67. 8 percent in 2022.
Due to higher digital adoption, customers are visiting branches less, hence the need for the Bank of Kigali to shutdown operations and restructure to provide digital services.
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