Zenith Bank Plc is poised to make its debut in East Africa through the acquisition of Kenya’s Paramount Bank, marking a strategic milestone in its pan-African growth agenda.
The Nigerian banking giant is currently seeking regulatory approvals from both the Central Bank of Nigeria and the Central Bank of Kenya, with a targeted completion date of January 2026, according to a report by Business Daily.
While the financial terms of the deal remain undisclosed, the move signals Zenith Bank’s intent to deepen its continental footprint amid shifting regulatory environment.
The acquisition comes at a time when Kenya’s banking sector is undergoing significant transformation. New prudential guidelines introduced by the Central Bank of Kenya will raise the minimum core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029.
This regulatory overhaul is expected to catalyze a wave of 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 a network of eight branches, is among institutions facing 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 would become the fourth Nigerian lender to operate in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank. The deal also coincides with the lifting of a decade-long moratorium on new banking licenses in Kenya, further opening the door for regional integration.
Zenith’s entry is expected to intensify competition in Kenya’s banking sector, offering customers and corporates more choices in pricing and products. It also reflects a broader trend toward consolidation, as well-capitalized regional players seek to spread risk and scale operations across borders.
This East African push follows Zenith Bank’s recent announcement of plans to expand into Côte d’Ivoire and eight other Francophone African countries. The expansion is backed by a robust N614.65 billion hybrid capital raise, which increased the bank’s capital base by 160%.
Speaking at the closing gong ceremony at the Nigerian Exchange (NGX) last month, Group Managing Director and CEO Adaora Umeoji emphasized the strategic importance of the capital raise.
“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,” Umeoji said.
She added that the Côte d’Ivoire license would grant Zenith passporting rights into eight additional Francophone markets, aligning with the 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.
In its unaudited financial results for the nine months ended 30 September 2025, Zenith Bank recorded a 16% year-on-year growth in gross earnings from N2.9 trillion in Q3 2024 to N3.4 trillion in Q3 2025.