The international banking and financial services corporation HSBC has concluded its operations in Nairobi, marking a three-year tenure in Kenya’s capital. This closure is a part of a broader global reorganization within the HSBC group, leading to reduced operations across its international markets.
The Central Bank of Kenya has acknowledged HSBC’s global realignment plans, which were announced last year, stating that this strategic move includes diminishing its footprint in Africa, notably its Nairobi representative office. The CBK will notify the market upon HSBC’s formal office closure, ensuring all regulatory protocols are followed.
Established in 2011, HSBC’s Nairobi branch was set up to cater to the burgeoning East African market, capitalizing on the region’s economic prospects. At the time, the region was experiencing a growth rate of 6.4 percent and was anticipated to maintain this pace into 2014, based on a United Nations economic report.
While HSBC opts to exit, other international banking institutions continue to tap into the dynamic economies of East African nations like Tanzania, Uganda, Rwanda, and Kenya. Banks such as JP Morgan Chase, Bank of China Limited, FirstRand Bank Limited, Central Bank of India, Rabobank Nederland, and Bank of Kigali maintain their presence, and new players like Dubai Islamic Bank are seeking entry, with license applications submitted to the CBK.
