Nine Foreign Banks Show Interest in the Kenyan Market after CBK Lifts Freeze

With the Central Bank of Kenya (CBK) lifting the freeze on licensing of new lenders, Kenya’s banking sector has attracted nine more banks from different countries.

Banks are seeking approval to set a shop in Nairobi, citing that the resilient economy, deeper financial connections and a dynamic regional market are suitable, said the banking regulator.

CBK governor Patrick Njoroge told the Press that nine banks from different jurisdictions have expressed interest in coming to Kenya, though he did not disclose their names or the specific countries they come from.

We’ve seen several international banks having more recently been making overtures to Kenya.

A New York based lender JP Morgan Chase has shown interest in setting up a representative office in Nairobi while Qatari National Bank (QNB) has been advertising its financial results in local dailies for the third year in a row. QNB has also shown interest in arranging a Sukuk (sovereign bond) for Kenya.

Currently, Kenya has 43 banks. Early this month the CBK lifted the moratorium it had imposed on the licensing of new banks since November 2015 following the collapse of Imperial Bank and Dubai Bank under the weight of banking malpractices.

The Kenyan Banking sector has been signaling a return of stability just after CBK’s made the decision to restart fresh licensing. This has seen the regulator announce that its finalizing approval of two new lenders – DIB Bank Kenya owned by UAE’s largest Islamic bank Dubai Islamic Bank (DIB) and Mayfair Bank Limited associated with Nairobi gubernatorial aspirant Peter Kenneth.

Issuance of new permits, exclusion of mergers takeovers an acquisitions were stopped by the Moratorium.

Related: Central Bank Holds Lending Rate at 10 Percent

Written by Amina Martha.