The Central Bank of Kenya (CBK) has authorized JPMorgan Chase Bank, the largest bank in the US, to establish a regional representative office in Nairobi, Kenya, just days before CEO Jamie Dimon’s visit to the city.
- •The JPMorgan Chase Bank N.A. Representative Office Kenya targets large multinationals that are not well-served by local investment banking firms due to a lack of expertise to handle large transactions.
- •JPMorgan Chase decided to set up a regional office in Nairobi after the bank’s CEO, Jamie Dimon, announced in 2018 that the bank had hired a special team of bankers to help coordinate and expand the bank’s relationships in Kenya and Ghana.
- •The authorization comes after 6 years of delays despite the office’s inauguration ahead of the CEO’s visit this month.
A representative office is mandated to sign deals on behalf of its parent company but shielded from collecting deposits from the public.
“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 new regional office in Nairobi will 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 going in, the wealth funds, and universities. The move is part of J.P. Morgan’s strategy to expand its services globally. The bank already has offices in South Africa and Nigeria.
JPMorgan’s move into Kenya is seen as a significant boost to the country’s economy and its efforts to position itself as a hub for finance and investment in East Africa. The bank’s decision to open a regional office in Nairobi is expected to create job opportunities and attract more foreign investment to 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 authorization of the Representative Office affirms Kenya’s standing as a premier financial services hub,” CBK noted in a statement,”
