KCB Set to Open Office in Ethiopia

Kenyan banks have finally found a window of opportunity in Ethiopia's closed economy.

Local banks attempted in vain to enter the Eastern Africa's most restricted economy in 2013.

However, the lenders seem to have found an entry point with Kenya Commercial Bank on Thursday announcing it had received a licence to open a representative office in Ethiopia.

KCB FORAY

This gives the bank a chance to tap Africa's second largest market by population.

In 2013, Ethiopia locked out Kenyan banks in an agreement that allowed local companies operating in other sectors to make forays into the country.

The deal, a special status agreement (SSA), which Kenya penned with Ethiopia, gave Kenyan companies access to the country.

The agreement was however restricted to trade, investment, infrastructure and food security alone.

Ethiopia heavily restricts foreign investors from venturing into the telecommunication, banking, media, retail, insurance, and electricity sectors.