Zenith Bank Plc is accelerating its pan-African expansion strategy with plans to acquire Kenya’s Paramount Bank, marking the Nigerian lender’s first entry into the East African banking landscape. The proposed deal, currently undergoing regulatory scrutiny in both Nigeria and Kenya, is expected to be finalized by January 2026, according to reporting by Business Daily. Although financial details remain undisclosed, the transaction signals Zenith Bank’s growing ambition to strengthen its footprint across key African markets at a time of rapid industry transformation.
A Strategic Move Amid Kenya’s New Capital Rules
Zenith Bank’s entry comes as Kenya’s banking sector prepares for sweeping regulatory changes that will significantly reshape the industry. The Central Bank of Kenya (CBK) recently announced new prudential guidelines that will raise the minimum core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029. The tougher capital threshold is expected to trigger a wave of mergers, acquisitions, and recapitalization efforts as mid-tier and small lenders race to meet the requirement.
Paramount Bank—classified as a mid-sized institution with core capital of Sh2.67 billion (N29.79 billion) and eight branches—falls squarely within the group of banks facing pressure to strengthen their balance sheets. For many such lenders, options include retaining earnings, issuing new shares, or entering strategic partnerships. Against this backdrop, Zenith Bank’s acquisition bid arrives as both timely and potentially transformative.
If approved, the deal would position Zenith Bank as the fourth Nigerian financial institution operating in Kenya, alongside UBA, GTBank, and Access Bank. It also follows the lifting of a decade-long moratorium on new banking licenses in Kenya, opening a new window for regional lenders seeking expansion opportunities.
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Regional Competition Heats Up
Zenith Bank’s planned entry is expected to intensify competition within Kenya’s dynamic banking sector, which is already home to strong domestic and regional players. Analysts predict that Zenith’s presence will expand product diversity and offer customers more competitive pricing, particularly in corporate banking, digital financial services, and trade finance. The move aligns with a broader trend of consolidation in African banking as well-capitalized institutions pursue scale, diversify risk, and follow their customers across borders.
A Broader African Expansion Strategy
The Kenyan acquisition is part of a wider expansion blueprint unveiled by Zenith Bank. Recently, the bank announced plans to extend its operations into Côte d’Ivoire and eight additional Francophone African countries. These moves are being supported by a robust N614.65 billion hybrid capital raise that boosted the bank’s capital base by 160%.
Speaking at the Nigerian Exchange (NGX) closing gong ceremony, Group Managing Director and CEO Adaora Umeoji highlighted that the capital raise is already enabling the bank’s continental growth. “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. She added that access to the Côte d’Ivoire market would provide passporting rights into eight other Francophone economies.
Strong Financial Performance Supports Expansion
Zenith Bank’s aggressive expansion is backed by solid financial performance. In its unaudited results for the nine months ending September 30, 2025, the bank recorded a 16% year-on-year increase in gross earnings—from N2.9 trillion in Q3 2024 to N3.4 trillion in Q3 2025. Interest income saw a notable 41% rise to N2.7 trillion, helping sustain a healthy Net Interest Margin of 12%, up from 10% the previous year.
Despite higher interest expenses and a 38% dip in non-interest income due to weaker trading gains, Zenith Bank remains well-positioned to fund its ambitious expansion drive.
