President William Ruto on Thursday explained the role the JPMorgan Chase representative office in Kenya will be playing shortly after holding a meeting with the bank's Chief Executive Jamie Dimon at State House, Nairobi.
Ruto revealed the office will not directly be engaging in banking activities locally but will instead serve various purposes including acting as a liaison and marketing hub for JP Morgan and its subsidiaries. The office will also explore business and investment opportunities in Kenya.
"Kenya has tremendous appeal as a diversified and dynamic economy and has the potential of being JP Morgan's financial center in Eastern Africa," the President assured.
The president also seized the opportunity to drum up Kenya's attractiveness as an investment destination and business hub which informed JPMorgan's decision to set up an offshoot within the country. Dimon is currently in Kenya as part of his African tour.
Kenya will now join South Africa and Nigeria as the third African country to have a JPMorgan Chase representative office. This is significant since the American lender is the world’s biggest bank by balance sheet.
The move to set up shop in Kenya is part of J.P. Morgan’s strategy to expand its services globally.
This comes after the Central Bank of Kenya (CBK) okayed the Bank's request to open a representative office in Nairobi after the American lender fulfilled several requirements it needed to comply with before being granted a license.
“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 by CBK read.
JPMorgan's decision to open a representative office in Kenya will be a big boon for Kenyan businesses which could leverage professionals at the office to secure financing or grow their networks.
The regional office in Nairobi is expected to serve as a hub for J.P. Morgan’s operations in East Africa, with the bank stating its intention to serve the country, all US multinationals, wealth funds, and universities.
Kenya now joins the over 60 countries worldwide in which the bank operates. The financial giant is set to rapidly be a major player in the country's economic market, boosting investments and promoting employment.
“In establishing a presence in Kenya, JPMorgan Chase Bank seeks to explore business opportunities in Kenya and the wider East African region," CBK noted in its initial statement.
