Bank of Kigali, one of the leading financial institutions in Rwanda, has received greenlight from the Central Bank of Kenya to close its physical services in the country, The New Times has learnt.

The Central Bank of Kenya (CBK) said in a statement dated April 5 that the closure takes effect on April 2, and that it was a voluntary decision from the parent company, BK Group Plc.

"The voluntary termination of BK’s (Bank of Kigali) 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. CBK authorized the establishment of the Bank of Kigali's Representative Office in Kenya on February 12, 2013.”

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The development comes nearly 11 years after BK opened its office in Nairobi, in a move to expand its business in the region.

It became the first foreign bank from the East African Community to be granted authority to operate a Representative Office in Kenya in 2013.

According to CBK, representative offices of foreign banks only serve as marketing and liaison offices for their foreign parent banks and affiliates and are not permitted to undertake banking business.

When Bank of Kigali opened its Representative Office in Kenya in 2013 it was seeking to explore potential business opportunities in the country to evaluate the prospects for a long-term presence in Kenya.

Bank of Kigali is cross-listed on the Nairobi Securities Exchange.

BoK, headquartered in Kigali, is a banking institution founded in 1966, licensed and supervised by the National Bank of Rwanda under the Law governing the banking organization.