The Central Bank of Kenya today announced that it had authorised the establishment of a representative office of JPMorgan Chase Bank N.A of the USA in Kenya.
“The Central Bank of Kenya announces the granting of authority to JPMorgan Chase Bank N.A of the United States of America (USA) to establish a Representative Office in Kenya by the name JPMorgan Chase Bank N.A Representative Office Kenya.” the statement read in part.
This authority is granted pursuant to Section 43 of the Banking Act following the fulfillment by JPMorgan Chase Bank N.A of the stipulated authorisation requirements.
Even so, JPMorgan will not be permitted to operate as a bank or conduct banking business of any kind.
“Under the Banking Act, Representative Offices of foreign banks in Kenya serve as marketing and liaison offices for their parent banks and affiliates and are prohibited to undertake any banking business," added the notice.
JPMorgan Chase Bank is a global financial conglomerate based in the USA. It operates in over 60 countries worldwide, offering services ranging from asset and wealth management, commercial banking, investment banking, and financial technology.
In this new development, the global financial giant is set to rapidly be a major player in the already bloated economic market in the country.
“In establishing a presence in Kenya, JPMorgan Chase Bank seeks to explore business opportunities in Kenya and the wider East African region," added the notice
Coincidentally, this authorisation comes at a time when JPMorgan CEO Jamie Dimon is set to visit Kenya and other African countries this month in a push by the biggest U.S lender to expand its operations in the continent.
Currently, JPMorgan has offices in Nigeria and South Africa where it offers asset and wealth management as well as commercial banking services.
In February 2023, while speaking to a senior executive at JPMorgan, President William Ruto reiterated the company’s commitment to establishing an office in the country.
The Central Bank of Kenya in its statement expressed optimism at the financial conglomerate's arrival in the country. “The JPMorgan Chase Bank N.A Representative Office Kenya will contribute to the diversity of Kenya’s financial sector and catalyze trade and investments. Additionally, the authorisation of the Representative Office affirms Kenya’s standing as a premier financial services hub.”
