The Kenyan market will see the entrance of a new bank as the Central Bank of Kenya (CBK) has granted authority to Rabobank Nederland to open a representative office in Kenya.
Other African countries where Rabobank has invested through local banks are Zambia, Tanzania, Rwanda and Mozambique.
Licensed and supervised by the Central Bank of Netherlands (De Nederlandsche Bank), Rabobank has presence in 43 countries across Europe, Asia, South America and Africa
The authority was granted pursuant to Section 43 of the Banking Act. Rabobank Nederland is a cooperative bank that is owned by local cooperatives in Netherlands and offers universal banking services to the public in addition to the traditional financial services to its member cooperatives.
Representative Offices of foreign banks serve as marketing and liaison offices for their foreign parent banks and affiliates and are not permitted to undertake banking business. In this regard, as Representative Office in Kenya discharges its marketing and liaison roles, it will also undertake market research to explore business opportunities to inform the long-term strategy of the bank in Kenya and the region.
The Kenyan banking sector has continued to attract the attention of global banking sector players, which indicates the existence of unexploited business opportunities in the sector.
The variety of financial products on offer and the resultant competition are envisaged to promote efficiency and accessibility of the banking sector. The Central Bank will continue to provide an enabling legal and regulatory environment to spur the growth and stability of the banking sector.