India’s top bank gets nod to open in Kenya

The Central Bank of India has acquired approval to run a representative office in Kenya as it seeks to tap into opportunities in the local financial sector.

In a statement on Monday, the Central Bank of Kenya (CBK) said it had issued the government-owned Indian commercial bank with the licence, making it the sixth foreign bank to be granted authority to operate locally.

“The Central Bank of Kenya’s authorisation of a sixth representative office moves the country a step further in its endeavour to be part of an increasingly globalised financial sector. It is a step closer towards realisation of the government’s aspiration to turn the country into a regional financial hub,” read the statement in part.

CBI will not engage in core banking but it is hoping to use its local presence to explore business opportunities with the aim of establishing a long-term presence.

It is also expected support trade links between Kenya and India as well as help the country penetrate the East African market.

“The new office will market the products and services of CBI to prospective customers in Kenya and the East African region, conduct market research and act as a liaison between the head office and its customers in the region,” the statement said.

Headquartered in Mumbai, the bank operates largely in India, its core activities being the provision of corporate and personal banking, investment banking and treasury services. It has an asset base of $50 billion and a network of more than 4,200 branches across the globe.

CBK said the approval was aimed at boosting efforts to turn the country into a regional financial services hub, one of the key pillars in the country’s economic growth blueprint, Vision 2030.