‘JP Morgan will not engage in banking activities’ – Ruto clarifies as US giant finance firm enters Kenya
By Kiplagat Sang, October 24, 2024
President William Ruto has clarified that US giant finance firm JP Morgan will not engage in banking activities in the country.
The president made the clarification after meeting JP Morgan’s Chief Executive Officer Jamie Dimon at State House in Nairobi on Thursday, October 24, 2024.
“JP Morgan, the world’s biggest bank by balance sheet, has received the approval of the Central Bank of Kenya to open a representative office in Nairobi. The office will serve as a liaison and marketing hub for JP Morgan and its subsidiaries.
“Though it will not engage in banking activities, it will explore business and investment opportunities in Kenya and the entire East African region. Kenya has tremendous appeal as a diversified and dynamic economy and has the potential of being JP Morgan’s financial centre in Eastern Africa,” Ruto said in a statement posted on X.
CBK’s nod
JP Morgan, which is headquartered in New York, got a nod to operate in the country from the Central Bank in mid-October this year.
“The Central Bank of Kenya (CBK) announces the granting of authority to JPMorgan Chase Bank N.A. of the United States of America (USA) to establish a Representative Office in Kenya by the name JPMorgan Chase Bank N.A. Representative Office Kenya.
“This authority is granted pursuant to Section 43 of the Banking Act and follows the fulfillment, by JPMorgan Chase Bank N.A., of the stipulated authorisation requirements. Under the Banking Act, Representative Offices of foreign banks in Kenya serve as marketing and liaison offices for their parent banks and affiliates and are not permitted to undertake banking business,” a CBK statement read.
CBK added that the JPMorgan Chase Bank will operate in line with this requirement.
JPMorgan Chase Bank operates in over 60 countries worldwide, offering services ranging from asset and wealth management to commercial banking, investment banking, and financial technology.
“In establishing a presence in Kenya, JPMorgan Chase Bank N.A. seeks to explore business opportunities in Kenya and the wider East African region. The JPMorgan Chase Bank N.A. Representative Office Kenya will contribute to the diversity of Kenya’s financial sector and catalyse trade and investments.
“Additionally, the authorisation of the Representative Office affirms Kenya’s standing as a premier financial services hub,” CBK added.