The Central Bank of Kenya (CBK) has authorized JPMorgan Chase Bank N.A., a US-based banking giant, to establish a representative office in Kenya, sparking concerns among the country’s leading commercial banks. JPMorgan Chase, the largest bank in the United States and the sixth-largest globally, now seeks to expand its footprint in Kenya.
Financial and investment experts have revealed that President William Ruto’s administration embraced this move, a decision that his predecessor, Uhuru Kenyatta, had previously rejected due to his interests in the banking sector.
The new office, to be called JPMorgan Chase Bank N.A. Representative Office Kenya, will function as a marketing and liaison hub for the bank’s parent institutions. However, it will not be authorized to conduct direct banking operations in the country. The CBK confirmed the authorization under Section 43 of the Banking Act, emphasizing that foreign bank representative offices in Kenya are restricted from engaging in banking activities.
Based in New York, JPMorgan Chase operates in over 60 countries and offers a wide array of services, including asset and wealth management, commercial banking, investment banking, and financial technology. The bank’s entry into Kenya is aimed at exploring business opportunities within the country and across the broader East African region.
The CBK noted that the establishment of the JPMorgan Chase representative office will contribute to the diversity of Kenya’s financial sector and stimulate trade and investment. It also reinforces Kenya’s status as a leading financial services hub.
