America’s banking giant JPMorgan has secured approval from the Central Bank of Kenya to open a representative office in Nairobi after 12 years of initially announcing the plan.
This approval precedes a visit by Jamie Dimon, CEO JP Morgan, who plans to travel to Kenya and three other African countries—Nigeria, South Africa, and Côte d’Ivoire—to expand the bank’s presence on the continent.
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The representative office, barred from engaging in commercial banking or transactions, will focus on marketing foreign products and services to Kenyans, while bolstering JP Morgan’s standing in the East African market.
JPMorgan can neither give out loans to locals nor accept deposits, as those services were not covered by the approval.
CBK hailed the initiative, stating that it will contribute to the diversification of Kenya’s financial sector and foster trade.
JPMorgan Chase Bank to diversify Kenya’s economy
“The JPMorgan Chase Bank representative office in Kenya will contribute to the diversity of Kenya’s financial sector and catalyse trade and investments,” Kenya’s Central Bank said in a statement on Monday.
“Additionally, the authorisation of the Representative Office affirms Kenya’s standing as a premier financial services hub.”
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The American top bank adds to a growing list of international banks trying to woo the Kenyan market and position itself strategically in its trade between locals and parent companies.
Notable international banks with representative offices in Nairobi include the Bank of China, HSBC, FirstRand Bank, Nedbank, Cooperative Rabobank of Mauritius, and Société Générale.
In 2023 alone, CBK signed various deals with foreign banks that was about Sh413.3 billion which was a 13 percent boost from 2022’s Sh356.6 billion.