US bank JPMorgan Chase to establish presence in Kenya after 12-year wait

JPMorgan Chase, one of the world’s largest banking conglomerates, has received approval to open a representative office in Kenya. The Central Bank of Kenya (CBK) announced the decision on Monday, nearly 12 years after the bank first disclosed its intention to establish a presence in the country.

The approval paves the way for Jamie Dimon, the bank's CEO, to visit Kenya as part of a tour spanning four African nations.

Dimon’s visit underscores the bank’s commitment to expanding its footprint on the continent and advancing its business interests in Africa.

CBK highlighted the significance of the move, stating, “The JPMorgan Chase Bank representative office in Kenya will contribute to the diversity of Kenya’s financial sector and catalyse trade and investments.”

It added, “Additionally, the authorisation of the Representative Office affirms Kenya’s standing as a premier financial services hub.”

JPMorgan Chase joins a growing number of international banks with representative offices in Kenya, increasing competition within the financial sector.

The latest addition brings the total number of foreign banks in Nairobi to 10, with lenders from countries such as China, India, Pakistan, Egypt, South Africa, and France already operating.

Representative offices allow foreign banks to promote their products and services, acting as liaisons between their parent companies and local clients. However, they are prohibited from core banking activities such as lending and deposit-taking.

Last year, foreign banks with representative offices in Kenya closed deals worth Sh413.3 billion, up 13% from Sh365.6 billion in 2022. These transactions span corporate, trade, property, and specialised financing, as well as syndicated and project financing, according to the CBK.