The Central Bank of Kenya (CBK) has authorized JPMorgan Chase Bank, the American Multinational investment bank, to open a representative office in Kenya.
In an official statement, CBK said the authority is issued pursuant to Section 45 of the Banking Act and follows JPMorgan Chase’s fulfillment of the stipulated authorization requirements.
However, the clearance does not authorize JPMorgan to operate as a bank or to undertake any banking-related business.
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 not permitted to undertake banking business,” the statement noted.
The apex bank noted that JPMorgan Chase Bank will operate in alignment with this requirement.
JPMorgan Chase Bank N.A., widely known as Chase, is an American financial conglomerate headquartered In New York, USA. The bank has operations in over 60 countries globally, providing an array of services, including commercial banking, investment banking, asset and wealth management, and financial technology.
In its statement, the Central Bank expressed optimism about JPMorgan’s entry into the country. “The JPMorgan Chase Bank Representative Offices Kenya will contribute to the diversity of Kenya’s financial sector and catalyze trade and investments. Additionally, the authorization of the Representative Office affirms Kenya’s standing as a premier financial services hub.”
The authorization comes when JPMorgan chief executive officer Jamie Dimon is expected to visit Kenya and other African countries this month.
The mover is part of JPMorgan’s strategy to expand its operation in Africa and globally. Currently, the US lender has offices in Nigeria and South Africa.
