Zenith Bank Denies Unauthorized Reports on Paramount Bank Acquisition
Nigeria’s Zenith Bank Plc has issued a clarification regarding media reports concerning a proposed acquisition of Kenya’s Paramount Bank. The bank stated that the information circulating in the public domain was neither released nor authorized by Zenith Bank, and no definitive decisions have been made regarding such a transaction.
This clarification was communicated in a statement filed with the Nigerian Exchange Limited (NGX) and signed by Michael Osilama Otu, Company Secretary of Zenith Bank.
Zenith Bank confirmed that it has initiated regulatory engagements to support its strategic expansion into East Africa. However, the bank emphasized that no binding transaction has been concluded to date.
“The Bank wishes to formally notify the Nigerian Exchange Limited (NGX), our esteemed shareholders, investors, and the general public that the information currently circulating in the public domain was not released or authorized by the Bank. However, as part of our long-term strategic growth agenda, the Bank is currently exploring various regional expansion opportunities-including within East Africa,” the statement read.
The bank further elaborated that these regulatory engagements are part of its objective to achieve expansion and may include, but are not limited to, the acquisition of any financial institution within the East African region.
Zenith Bank reiterated its commitment to strictly adhering to all NGX and SEC regulations concerning disclosure should any reportable transaction materialize.
Background to the Speculation
The circulation of these reports began on Monday, November 17th, 2025, following a Business Daily article that claimed Zenith Bank was preparing to enter the Kenyan market through the acquisition of Paramount Bank. The report suggested that the Nigerian financial giant would take over the mid-tier lender, which possesses Sh2.67 billion (approximately N29.79 billion) in capital and operates eight branches.
Furthermore, the report indicated that Zenith Bank was in the process of seeking approval from the central banks of both Nigeria and Kenya, with the intention of finalizing the transaction by January 2026. The article stated, “This move would the bank’s first entry into the East African market and is expected to reach completion by January 2026, pending the necessary regulatory approvals from both the Central Bank of Nigeria (CBN) and the Central Bank of Kenya (CBK).”
Although the official deal value has not been disclosed, the potential transaction presents Zenith Bank with an opportunity to enter a market where several of its major Nigerian competitors, including UBA, GTBank, and Access Bank, already have a substantial presence.
Kenya's Banking Sector Landscape
Kenya's banking sector is currently navigating a period of significant regulatory transformation. The Central Bank of Kenya has announced its intention to increase the minimum core capital requirement for banks from Sh1 billion (approximately N11.16 billion) to Sh10 billion (approximately N111.58 billion) by the year 2029.
This forthcoming regulatory shift is anticipated to catalyze a series of mergers, acquisitions, and capital restructuring initiatives throughout the industry. Financial institutions like Paramount Bank are facing pressure to recapitalize, positioning them as potentially attractive acquisition targets for strategic investors such as Zenith Bank.
Should the acquisition proceed and receive approval, Zenith Bank would become the fourth Nigerian lender to establish operations in Kenya, joining the ranks of UBA, GTBank, and Access Bank. This growing presence of Nigerian banks is expected to significantly escalate competition within the Kenyan banking sector.
Zenith Bank's Broader Expansion Strategy
Zenith Bank is approaching potential new markets from a position of considerable financial strength. In August, the bank announced its strategic plans to expand its operations into the Francophone African region, commencing with the Ivory Coast. This announcement followed closely after the bank successfully raised N350.4 billion through a combined rights issue and public offer.
The lender indicated that it is currently evaluating options for its Ivory Coast entry, considering whether to acquire an existing financial institution or establish a new operation from the ground up. In addition to its focus on the Ivory Coast, Zenith Bank has also expressed its ambition to establish a presence in Cameroon and accelerate its strategic entry into the Kenyan market.
Olukayode Akinbinu, Zenith Bank’s Head of Strategy, stated that the Ivory Coast subsidiary is projected to commence operations later in the current year, with plans for Cameroon to follow as soon as feasible.
Regarding the financial backing for this expansion initiative, the bank confirmed that 40% of the N350.4 billion raised in July will be allocated to these growth projects. Zenith Bank highlighted that this capital injection has elevated its total share capital to N614.65 billion, surpassing the Central Bank of Nigeria’s (CBN) new minimum requirement of N500 billion for international lenders by N114.65 billion.