- The US bank, JP Morgan Chase, a financial institution, has officially obtained a banking licence in Kenya as part of a strategic move to expand into emerging markets.
- Following the licence, JP Morgan will be able to offer a broader range of financial services, including corporate and investment banking, treasury, and asset management services.
- The Central Bank of Kenya (CBK) announced that it has authorised JP Morgan to establish a representative office in Kenya under the name JP Morgan Chase N.A. Representative Office Kenya.
Additionally, the CBK stated that the authorisation is in accordance with Section 43 of the Banking Act and follows JP Morgan's fulfilment of the stipulated requirements.
Representative offices of foreign banks in Kenya act as marketing and liaison hubs for their parent banks and affiliates. However, they are not permitted to engage in actual banking transactions.
“In establishing a presence in Kenya, JP Morgan seeks to explore business opportunities in the country and the wider East African region,” the CBK said.
The US banking giant is said to have over $4.1 trillion in assets and operations in more than 100 countries. The issuance of the licence, however, comes ahead of a visit by company CEO Jamie Dimon.
In September 2024, Reuters reported that Dimon plans to visit Kenya, South Africa, Ivory Coast, Nigeria in mid-October, adding that JP Morgan aims to expand in Africa despite past regulatory challenges.
Moreover, JP Morgan already has offices in South Africa and Nigeria, and in 2018, the CEO reportedly said that the bank would consider entering Ghana and Kenya. In February 2023, Kenyan President William Ruto, following a meeting with a senior JP Morgan executive, stated that the bank had committed to opening a new office in Nairobi.
Additionally, the nod given to JP Morgan brings the number of international banks with representative offices in Kenya to ten including Bank of China and Societe Generale. Having the US bank in the nation is also expected to catalyse trade and investment, as well as contribute to the financial sector.
This also comes as deals closed by foreign financiers with representative offices in Kenya reportedly increased by 13% in 2023.
