Zenith Bank Plc is set to enter Kenya through the acquisition of Paramount Bank, marking a defining step in its pan-African expansion strategy.
The Nigerian lender is awaiting final regulatory clearance from the Central Bank of Nigeria and the Central Bank of Kenya, with completion targeted for January 2026.
The financial terms remain undisclosed, but the move signals Zenith Bank’s intent to widen its African presence as regulatory conditions shift across the region. The deal highlights the bank’s long-term strategy to operate in high-growth markets and diversify risk across borders.
Kenya’s Regulatory Shift Sparks Industry Consolidation
The transaction comes as Kenya’s Central Bank introduces new prudential rules, raising the minimum core capital for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029. This policy change is expected to push banks toward mergers, capital injections, and strategic partnerships.
Paramount Bank, which currently holds Sh2.67 billion (N29.79 billion) in core capital and runs eight branches, is among lenders under pressure to recapitalize. Zenith Bank’s entry therefore arrives at a decisive moment, offering a timely and potentially transformative lifeline.
Nigeria’s Banks Deepen Presence in Kenya
If approved, Zenith will become the fourth Nigerian bank operating in Kenya, joining UBA, GTBank, and Access Bank. The deal also aligns with Kenya’s recent decision to lift a decade-long freeze on new banking licenses, opening the door wider for regional competition.
Zenith’s presence is expected to intensify rivalry in pricing, digital banking, and product offerings. It also reflects broader African banking trends, where strong regional players use cross-border scale to drive profitability.
Expansion Into Francophone Africa Accelerates
The Kenyan move follows Zenith’s expansion plan into Côte d’Ivoire and eight other Francophone countries, supported by a N614.65 billion hybrid capital raise. That fundraising effort grew the bank’s capital base by 160%, giving it the firepower to open new markets.
Group CEO Adaora Umeoji said, “Since the capital raise exercise, we’ve been able to use part of the money to expand our footprints,” noting the launch of a Paris branch and a pending Côte d’Ivoire license. She added that the license would grant “passporting rights into eight additional Francophone markets,” allowing Zenith Bank to follow customers into high-growth economies.
Financial Performance Strengthens Growth Ambition
Zenith recorded a 16% year-on-year rise in gross earnings to N3.4 trillion in Q3 2025, driven by a 41% surge in interest income to N2.7 trillion. Even with a 22% increase in interest expense to N814 billion due to tighter monetary conditions, the bank achieved a strong 12% Net Interest Margin compared with 10% a year earlier.
Non-interest income dropped 38% to N535 billion, mainly due to a steep fall in trading gains. Still, the bank’s large earnings base continues to support its aggressive regional expansion plans.
