(Ecofin Agency) – Announced since 2015, the project will be brought to fruition over the coming months. The American financial group finally obtained authorization from the Central Bank of Kenya. The new entity will serve as a hub in the East African sub-region.
JP Morgan Chase & Co, the largest US bank in terms of total assets ($3.875 billion), will open a representative office in Kenya, under the name JP Morgan Chase Bank NA Representative Office Kenya. In a announcement published on Monday October 14, 2024, the Central Bank of Kenya (CBK) confirms that it has authorized its installation.
The structure will not be authorized to undertake banking activities in Kenya. It will mainly serve as a liaison and marketing office for the American bank and its subsidiaries.
“By establishing a presence in Kenya, JP Morgan Chase Bank NA seeks to explore business opportunities in Kenya and the broader East Africa region. The office […] will contribute to the diversity of the Kenyan financial sector and catalyze trade and investment,” said the CBK.
African tour by Jamie Dimon, CEO of JP Morgan
The actual opening of the Kenyan office could take place during the visit of JP Morgan CEO Jamie Dimon. This is expected in Kenya, but also in Nigeria, South Africa and Ivory Coast during the month of October. This African tour should strengthen the influence and position of the American bank on the continent. The group is already present in Africa via representative offices in Nigeria and South Africa. In these two major African economies, it offers asset and wealth management services as well as investment banking services.
Kenya in JP Morgan’s sights since 2015
In October 2015, the bank interrupted its application to open a representative office in Kenya, while it was being processed, says the CBK. Three years later, in January 2018, Jamie Dimon relaunched this project, announcing at the World Economic Forum in Davos, Switzerland, that his bank intends to open a representation in Kenya. In February 2023, following a meeting between a JP Morgan executive and the Kenyan president, William Ruto, the latter confirmed the upcoming opening of a representative office in the country.
This marked interest in Kenya is certainly not trivial. The country could represent JP Morgan’s financial center in East Africa. Presented as one of the most diversified and dynamic economies in this sub-region, Kenya has become a hub of innovation and technological development on the continent. This position has attracted many investors and American multinationals who have established their activities there. JP Morgan could thus support these multinationals in their operations in East Africa.
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