Bank of China has been granted a license to open a representative office in the country by the Central Bank of Kenya. The bank is eyeing a full operation in east Africa. According to Reuters, foreign lenders have been looking to set up operations in Kenya where collective industry profit jumped 20.4% last year to 89.3 billion shillings.

BOC, in which the Chinese Sovereign Wealth Fund holds a substantial stake, is headquartered in Beijing and focuses on corporate and personal banking as well as investment banking.

CBK is due to implement a new set of rules that among other things guide how foreign banks establish representative offices in the country. Section 43 of the Banking Act empowers CBK to authorize a bank or financial institution incorporated outside Kenya which does not propose to transact banking or financial business in Kenya to establish a Representative office in Kenya.

A representative office is allowed to provide its customers with banking, financial and other relevant advice but is not allowed to take deposits. It can provide its customers with information regarding the local market and also provide information to any local party which intends to develop its activities in countries where the foreign institution operates in.

BOC's entry into the country cements views that the East Asian economic giant will be using Nairobi as its hub in its bid to penetrate African markets. Last month, Chinese pay TV  StarTimes Media launched in Kenya going head to head with MultiChoice's DSTV and GoTV, and Zuku TV.