The Central Bank of Kenya has granted an operating license to JP Morgan Chase Bank, a US banking giant with significant assets. The license approval coincides with the upcoming visit of the company’s CEO, Jamie Dimon.
The Central Bank of Kenya (CBK) has officially authorized JP Morgan Chase Bank N.A. of the United States to establish a representative office in Kenya under the name JP Morgan Chase N.A. Representative Office Kenya. This authorization is in accordance with Section 43 of the Banking Act and follows the fulfillment of the required conditions by JP Morgan.
According to Kenya’s banking regulations, foreign bank representative offices in the country primarily serve as marketing and liaison offices for their parent banks and are restricted from conducting banking activities. JP Morgan’s new office in Nairobi will focus on promoting its banking services without engaging in direct transactions like traditional commercial banks.
This development makes JP Morgan the second US bank to have a representative office in Nairobi, following CitiBank. The bank’s entry into Kenya comes after a ten-year period since expressing interest in establishing a presence in East Africa’s largest economy back in 2012.
CEO Dimon is scheduled to visit Kenya, Nigeria, South Africa, and Côte d’Ivoire in October, as reported by Reuters. JP Morgan already operates in Nigeria and South Africa, two prominent African economies, and with a global presence spanning 100 countries, is seeking growth opportunities in overseas markets.
JP Morgan’s African offices offer asset management, commercial, and investment banking services. The establishment of the Nairobi office signals the bank’s intention to explore business prospects in Kenya and the broader East African region during Dimon’s visit.
“In establishing a presence in Kenya, JP Morgan aims to evaluate business opportunities in the country and the wider East African region,” stated CBK.
Several major global banks are increasingly interested in participating in sovereign debt and corporate transactions in Africa. In a recent Eurobond issuance by Kenya, JP Morgan was selected alongside CitiBank and Standard Chartered Bank as lead arrangers.