NAIROBI, Kenya Jan 5 – The Central Bank of Kenya (CBK) has granted authority to the Mauritius Commercial Bank (MCB) to open a representative office in Nairobi in pursuant to Section 43 of the Banking Act.,
Representative offices of foreign banks only serve as marketing and liaison offices for their foreign parent banks and affiliates and are not permitted to undertake banking business.
CBK says the MCB through its representative office in Kenya aims at exploring potential business opportunities in the country.
The office will also support the growing trade and investment flows between Kenya and Mauritius.
As at June 30, 2014, MCB’s market capitalization was at Sh153.18 billion on the Mauritius Stock Exchange, representing a 22 percent market share and has diversified its ownership with 24 percent of the shareholders being foreign investors and 76 percent local investors.
MCB Ltd was founded on September 1, 1838 in Port Louis, Mauritius, licensed and supervised by the Bank of Mauritius under the Mauritius Banking laws.
Outside Mauritius, Mauritius Commercial Bank has a presence in Madagascar, Maldives, Mozambique, Seychelles, South Africa, France, Reunion and Mayotte.
“The Kenyan banking sector has continued to attract increasing interest from Continental Africa, regional and global banking brands aiming to exploit business opportunities in the East African Community,” CBK said.
The entry of foreign players will promote competition and diversify the current offerings of financial services.