Zenith Bank Plc is set to make its debut in East Africa through the proposed acquisition of Kenya’s Paramount Bank, signaling a major step in the Nigerian lender’s pan-African growth strategy.
The deal, pending regulatory approvals from both the Central Bank of Nigeria and the Central Bank of Kenya, is targeted for completion by January 2026, according to a report by Business Daily.
While the financial terms remain undisclosed, the acquisition underscores Zenith Bank’s ambition to deepen its continental footprint amid a changing regulatory landscape in Kenya.
The East African country’s banking sector is undergoing a significant transformation, with new prudential guidelines requiring banks to raise minimum core capital from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029. Analysts expect the regulatory overhaul to spur mergers, acquisitions, and capital injections across the industry.
Paramount Bank, a mid-tier lender with core capital of Sh2.67 billion (N29.79 billion) and eight branches, faces pressure to recapitalize. Options include retained earnings, fresh equity, or strategic partnerships making Zenith Bank’s offer timely and potentially transformative.
If approved, Zenith Bank will become the fourth Nigerian lender to operate in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank.
The move coincides with the lifting of a decade-long moratorium on new banking licenses in Kenya, opening further opportunities for regional expansion.
Zenith Bank’s entry is expected to intensify competition, offering Kenyan customers and corporates more choices in products and pricing. It also reflects a broader trend of consolidation as well-capitalized regional banks seek to scale operations across borders and spread risk.
The proposed East African expansion follows Zenith Bank’s recent announcement to enter Côte d’Ivoire and eight other Francophone African markets, supported by a N614.65 billion hybrid capital raise that increased the bank’s capital base by 160 per cent.
Speaking at the Nigerian Exchange (NGX) closing gong ceremony last month, Group Managing Director and CEO Adaora Umeoji emphasized that the expansion strategy is customer-driven.
“Since the capital raise exercise, we’ve been able to use part of the money to expand our footprints. We started by opening our Paris branch, and we are going to move from there to Côte d’Ivoire, which we are already processing the license,” she said.
Umeoji added that the Côte d’Ivoire license would provide passporting rights into eight additional Francophone markets, aligning with Zenith Bank’s strategy to follow its customers into high-growth economies.
“This expansion strategy is a result of us following our customers’ business and ensuring that we go to countries and economies where we can scale and be able to provide more returns for our shareholders,” she explained.
With this move, Zenith Bank positions itself as a major regional player, leveraging capital strength and strategic acquisitions to grow its footprint across Africa’s most dynamic markets.