The Central Bank of Kenya has announced that it has issued a license to JP Morgan Chase Bank which will see them open a representative office. The license issuance comes days before the visit of company CEO Jamie Dimon.
CBK in a statement said, “The Central Bank of Kenya (CBK) announces the granting of authority to JP Morgan Chase Bank N.A. of the United States to establish a representative office in Kenya by the name JP Morgan Chase N.A. Representative Office Kenya. This authority is granted pursuant to Section 43 of the Banking Act and follows the fulfillment by JP Morgan of the stipulated requirements.”
Representative offices of foreign banks serve as “marketing and liaison offices for their parent banks and are not permitted to undertake banking business”. JP Morgans new office in Nairobi will be used to market its banking services but will not be allowed to direct transactions as with other commercial banks.
The bank becomes the second US bank with a representative office in Nairobi after CitiBank. It ends a decade wait for the bank which first expressed interest in opening a branch in East Africa’s biggest economy in 2012.
CEO Dimon plans to visit Kenya, Nigeria, South Africa, and Côte d’Ivoire in October, Reuters reported. The lender already has offices in Nigeria and South Africa, two of the largest economies on the continent. With operations in 100 countries, it has been eyeing overseas markets for growth.
The bank’s offices in Africa offer asset management and commercial and investment banking services. It could be looking to grow its market with the new Nairobi office as it explores Abidjan during Dimon’s visit.
Major global banks are also seeking a share of sovereign debt and corporate transactions in Africa. In 2023, Kenya picked JP Morgan alongside CitiBank and Standard Chartered Bank as lead arrangers for the Eurobond.