This authority, according to CBK, is granted pursuant to Section 43 of the Banking Act and follows the fulfilment, by JPMorgan Chase Bank N.A., of the stipulated authorisation requirements.
The Central Bank of Kenya (CBK) has granted permission to JPMorgan Chase Bank N.A., the largest bank in the United States and the world’s largest bank by market capitalization as of 2023, to open a representative office in Kenya.
This is a strategic move that will allow the American multinational finance company headquartered in New York City and incorporated in Delaware, to operate in Kenya by the name JPMorgan Chase Bank N.A. Representative Office Kenya.
This authority, according to CBK, is granted pursuant to Section 43 of the Banking Act and follows the fulfilment, by JPMorgan Chase Bank N.A., of the stipulated authorisation requirements.
A building housing JPMorgan Chase & Co. in New York. /NEW YORK TIMES
“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. The JPMorgan Chase Bank N.A. Representative Office Kenya will operate in line with this requirement,” a statement from CBK read in part on Monday, October 14.
JPMorgan Chase Bank N. A is a financial conglomerate domiciled in the USA. It operates in over 60 countries worldwide, offering services ranging from asset and wealth management, 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,” added CBK.
The bank’s decision to open a regional office in Nairobi is expected to create job opportunities and attract more foreign investment to the country.
The firm’s early history can be traced to 1799, with the founding of what became the Chase Manhattan Company. In 1871, J.P. Morgan & Co. was founded by J. P. Morgan who launched the House of Morgan on 23 Wall Street as a national purveyor of commercial, investment, and private banking services.
The present company was formed after the two predecessor firms merged in 2000, creating a diversified holding entity. It is a major provider of investment banking services, through corporate advisory, mergers and acquisitions, sales and trading, and public offerings.
Their private banking franchise and asset management division are among the world’s largest in terms of total assets. Its retail banking and credit card offerings are provided via the Chase brand in the U.S. and United Kingdom.
With Ksh503.2 trillion (US$3.9 trillion) in total assets, JPMorgan Chase is the fifth-largest bank in the world by assets. The firm operates the largest investment bank in the world by revenue. It occupies 24th place on the Fortune 500 list of the largest U.S. corporations by revenue.
In 2023, JPMorgan Chase was ranked number one in the Forbes Global 2000 ranking. Despite these recognitions, it receives routine criticism for its risk management, broad financing activities, and large-scale legal settlements.
In the same year, President Ruto announced that J.P. Morgan had chosen to establish its regional headquarters in Nairobi, which is part of the bank’s efforts to expand its footprint in Africa and tap into the continent’s growing economy.
The move by JP Morgan is seen as a vote of confidence in Kenya’s economy, which has been recovering steadily in recent years despite global shocks. The country has attracted significant investment in infrastructure, energy, and technology, and is seen as a key player in Africa’s economic development.
President William Ruto met representatives of JP Morgan Investment Bank at State House on February 21, 2023. /PCS