Egypt’s second-largest lender, Banque Misr-S.A.E., has obtained a license to operate a representative office in Kenya, with the goal of pursuing trade finance deals for Egyptian businesses looking to expand into the East African region.
The Central Bank of Kenya announced on Tuesday that it had granted the license to the State-owned lender, making it the second Egyptian bank with a presence in Nairobi, following Egypt’s largest private lender Commercial International Bank’s purchase of a controlling stake in Kenya’s Tier-III Mayfair Bank in 2020.
“The CBK announces the granting of authority to Banque Misr–S.A.E. of Egypt to establish a Representative Office in Kenya by the name Banque Misr – S.A.E.– Kenya Representative Office,” said the CBK in a statement.
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 new license brings the total number of foreign bank representative offices in Nairobi to ten.
On behalf of their parent banks, these units conduct research, marketing, and liaison activities. They are, however, prohibited from providing commercial banking services, including deposit taking, unless they establish a full-fledged subsidiary or branch.
“The Representative Office is expected to play a catalytic role in strengthening the long-standing trade relationship between Egypt and Kenya.”
Banque Misr – S.A.E. provides a wide range of retail and corporate banking services, as well as trade finance services in its home country and internationally.
Outside Egypt, it has operations in the Middle East, Europe, Russia, South Korea, and China.
