J.P. Morgan, the world’s largest bank by market capitalisation, has received official approval from the Central Bank of Kenya (CBK) to open a representative office in the country, ending a 12-year wait to establish a presence in the market.
According to the CBK, the new office, known as JPMorgan Chase Bank N.A. Representative Office Kenya, will enhance the diversity of Kenya’s financial sector and stimulate trade and investments.
“Moreover, the authorisation of this office underscores Kenya’s status as a premier financial services hub,” the banking sector regulator said on Monday.
The approval, which comes ahead of an expected visit to Kenya by chief executive Jamie Dimon, will allow the bank to explore business opportunities in Kenya and the East African region.
The American banking giant becomes the 10th international bank to open a representative office in Kenya, joining other lenders from countries such as South Africa, China, France, Egypt, India, Pakistan, Mauritius, and the Netherlands.
These banks include Nedbank, Cooperative Rabobank of Mauritius, Bank of Kigali, French lender Société Générale, South Africa’s First Rand Bank and Bank of China.
A representative office enables foreign banks to showcase their products and services in the country and serve as a link between their main office and local customers. However, such offices are not allowed to undertake some basic banking operations like lending or deposit-taking.
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