USA banking giant JP Morgan Chase Bank will soon open up branches in Kenya. This is after Treasury okayed its entrance to the Kenyan market as it seeks to spread its tentacles across the wider African region.
Jamie Dimon, the lender’s CEO is expected on an African leg tour, this October, of four countries to establish its footprints. The four are Kenya, Nigeria, South Africa, and Ivory Coast.
“The JPMorgan Chase Bank N.A Representative Office Kenya will contribute to the diversity of Kenya’s financial sector and catalyze trade and investments. Additionally, the authorization of the Representative Office affirms Kenya’s standing as a premier financial services hub,” CBK noted.
Facts About JP Morgan Chase Bank
- It is an American multinational finance company with HQ in New York.
- JP Morgan is the world’s largest bank by market cap as of 2023.
- With USD 3.9 trillion in total assets, JPMorgan Chase is the 5th largest bank in the world by assets.
- JPMorgan Chase is mainly owned by institutional investors, with over 70% of shares held.
- The 10 largest shareholders of the bank in December 2023 are among others The Vanguard Group (9.46%), BlackRock (6.66%), State Street Corporation, (4.35%), Morgan Stanley (2.25%), Geode Capital Management (1.92%), Fidelity Investments (1.83%), and Bank of America (1.77%).
- The bank already has offices in South Africa and Nigeria.
Dimon’s Strategic Visit
The bank’s CEO, Dimon, announced in 2018, that the bank had hired a special team to help them coordinate and expand the bank’s relationships in Kenya and Ghana.
The six-year delay has slowed down its operational expansion plans in the region. Despite the delay, things seem to be warming up again ahead of the visit.
A representative office has been set ahead of the coming.
A representative office signs deals on behalf of its parent company but is not mandated to collect deposits.
Despite the office’s inauguration, JP Morgan is yet to secure a banking license from the Central Bank of Kenya (CBK).
Dimon’s high-level meetings with high-ranking Kenyan government officials are expected to discuss the license issue as the main agenda.
Major Plans Underway
The new regional office in Nairobi will serve as a hub for J.P. Morgan’s operations in East Africa. The bank intends to serve the country, US multinationals going in, the wealth funds, and foreign universities.
According to Reuters, JPMorgan recently unveiled a $20 billion investment plan which will see it hike wages, hire more, and open new branches as it takes advantage of sweeping changes to U.S. tax law and a more favorable regulatory environment.
