After a lengthy 12-year wait, US banking giant JP Morgan Chase has received an operating license from the Central Bank of Kenya to establish a representative office in Nairobi.
While this office will not conduct transactions like a traditional bank, it will promote JP Morgan’s banking and advisory services in the region.
JP Morgan CEO Jamie Dimon has previously stated that the bank intends to focus on significant deals involving the government and large multinationals based in Kenya. The bank has already played a pivotal role as a lead arranger, alongside CitiBank, for Kenya’s three Eurobond issuances.
The move is part of a broader trend among international banks, which are following their multinational clients setting up operations in Africa. Local banks often struggle with limited capital bases, making it challenging to finance large infrastructure projects and multinational expansions.
JP Morgan’s presence could help East African nations secure syndicated loans for major projects, such as railways and roads.
Additionally, Kenya’s membership in the East African Community could enable JP Morgan to tap into other regional markets. This expansion marks another step in JP Morgan’s growing footprint in Africa, where it already has offices in Nigeria and South Africa.
The license approval coincides with Dimon’s upcoming visit to Nigeria, Kenya, South Africa, and Côte d’Ivoire, where JP Morgan is also considering future expansion.
