News and Analysis
November 21, 2024
The Central Bank of Kenya (CBK) on Monday, October 14, announced it had given a go ahead to JP Morgan Chase Bank, the world’s biggest bank by market capitalization, to set up a representative office in Kenya.
CBK said in a statement that a representative office helps foreign banks to market their products and services in the country and act as liaison between the parent firm and local clients, but are prohibited from undertaking primary banking business such as lending and deposit-taking..
According to CBK, the JPMorgan Chase representative office will contribute to the diversity of the financial sector and enhance trade and investments in the country.
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"The JPMorgan Chase Bank representative office Kenya will contribute to the diversity of Kenya's financial sector and catalyse trade and investments, " the statement read.
Last year, the deals closed by foreign financiers with representative offices rose by 13% to hit Ksh413.3 billion compared to Ksh365.6 billion in 2022.
The deals included corporate, trade, property, specialised financing, syndicate and project financing.
Other foreign banks that have representative offices in Nairobi include Bank of China, South Africa's First Rand Bank, Cooperative Rabobank of Mauritius and French lender Societe Generale.
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The Bank of Kigali had previously received authority to run a Kenyan office but the authority was revoked by the CBK in April 2024.
JP Morgan Chase Bank’s license for a Kenyan office comes ahead of an expected visit to Nairobi by the Bank's CEO Jamie Dimon in the coming days.
In other news, the CBK announced it has successfully switched from Kenya Electronic Payment and Settlement System (KEPSS) to a new system called ISO20022 Global Messaging Standard.
KEPSS is Kenya's system for implementing Real Time Gross Settlement (RTGS) system, a common payment platform in Kenya’s banking industry.
The upgrade is set to make payments faster, safer, and easier to track for banks and businesses positioning the country as a leading and globally competitive payments destination.
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