The Central Bank of Kenya (CBK) has said it has granted authority to the Central Bank of India (CBI) to open a representative office in Kenya, the sixth foreign bank to be authorized to operate in the east Africa nation.
A statement from the CBK Monday said the apex bank's authorization moves Kenya a step further in its endeavour to be part of an increasingly globalized financial sector, reported Xinhua.
"It is also a step closer towards realization of the government's aspiration to turn the country into a regional financial hub as envisaged under Vision 2030," the statement said.
The CBK said it will continue to support the ministry of finance and the government towards eventual realization of this goal.
Central Bank of India is a commercial bank that is substantially owned by the Indian government, which holds majority of the bank's share capital with a network of over 4,200 branches and an asset base of over $50 billion.
Headquartered in Mumbai, the bank operates largely in India with its core activities being the provision of corporate and personal banking, investment banking and treasury services.
In Africa, the bank has a presence in Zambia where it operates through a subsidiary which is engaged in commercial banking, both retail and corporate.
Under Kenya's Banking Act, a representative office of a foreign bank may engage in marketing and liaison roles in connection with the activities of its parent bank and affiliates but is not allowed to engage in banking business as defined in the Act.
