In a significant move for African finance, Nigeria's Zenith Bank Plc has announced plans to acquire Kenya's Paramount Bank, marking its official entry into the East African market. This strategic acquisition represents a major step in the bank's ongoing pan-African expansion strategy and will introduce more banking options for Kenyan customers.
Regulatory Process and Transaction Timeline
The Nigerian lender is currently seeking the necessary regulatory approvals from both the Central Bank of Nigeria and the Central Bank of Kenya. According to reports from Business Daily, the transaction is targeted for completion in January 2026, pending these approvals. While the financial specifics of the deal remain confidential, the acquisition aligns with Zenith Bank's broader strategy to strengthen its continental presence.
Kenyan Banking Sector Context
This acquisition comes at a pivotal moment for Kenya's banking industry, which is undergoing significant reform. The Central Bank of Kenya recently introduced new prudential regulations that will substantially increase the minimum core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029.
This regulatory shift is expected to drive numerous mergers, acquisitions, and capital injections across the sector. Paramount Bank, a mid-tier lender with a core capital of Sh2.67 billion (N29.79 billion) and eight branches, is among the institutions needing to strengthen its capital base. The bank's options for recapitalization include retained earnings, fresh equity, or strategic partnerships, making Zenith Bank's offer both timely and potentially transformative for Paramount's operations.
Expanding Nigerian Banking Presence in Kenya
If the acquisition receives regulatory approval, Zenith Bank would become the fourth Nigerian bank operating in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank. This growing presence underscores the increasing interconnectedness of African financial markets and the strategic importance of the Kenyan economy to Nigerian banking giants.
The expansion into Kenya represents just one component of Zenith Bank's broader African strategy. The bank has also revealed plans to expand into Côte d'Ivoire and eight other Francophone African countries. This ambitious expansion is supported by a N614.65 billion hybrid capital raise, which significantly boosted the bank's capital base by 160%.
At the closing ceremony of the capital raise on the Nigerian Exchange (NGX) last month, Group Managing Director and CEO Adaora Umeoji highlighted the strategic importance of this financial maneuver. She stated, "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."
This expansion news follows similar moves by other Nigerian financial institutions in the region. Access Holdings Plc, the parent company of Access Bank, recently confirmed the completion of its acquisition of the National Bank of Kenya (NBK) in a deal valued at approximately N179.1 billion (US$109.6 million), as revealed in its 2025 half-year financial statement published on NGX.
The increasing presence of Nigerian banks in Kenya signals a new era of cross-border banking collaboration in Africa, promising enhanced financial services and greater integration of African economies through the banking sector.
