Zenith Bank's Strategic Entry into East Africa
Zenith Bank Plc, Nigeria’s second-largest bank by assets, is executing a major strategic move to expand into East Africa with its planned acquisition of Kenya’s Paramount Bank. This move marks the bank’s first entry into the East African market. It 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).
While the official deal value remains undisclosed, the transaction offers Zenith a new entry into a market where its major Nigerian competitors, including UBA, GTBank, and Access Bank, have already established a significant presence.
If the acquisition is approved, Zenith Bank will become the fourth Nigerian lender to operate in Kenya, joining UBA, GTBank, and Access Bank. This increased Nigerian presence is expected to significantly intensify competition in the Kenyan banking sector. For local customers and corporations, Zenith’s entry could translate into more competitive choices in pricing and products, ultimately benefiting the consumer base.
More broadly, Zenith Bank’s move reflects a growing trend where well-capitalised Nigerian institutions are consolidating assets and spreading risk across the continent, shaping a more concentrated, pan-African banking landscape. The bank’s ability to use its financial capacity, reinforced by its oversubscribed capital raise, to execute cross-border acquisitions highlights how tougher local capital thresholds are being exploited by regional giants to gain market access and scale operations.
Zenith Bank’s Strategic Entry into a Consolidating Market
Zenith Bank’s timing is highly strategic, coinciding with a period of new structural change within the Kenyan banking sector. The CBK has introduced stringent new prudential rules, which mandate that banks must raise their minimum core capital from the current Sh1 billion to an ambitious Sh10 billion by 2029. This regulatory push is designed to strengthen the resilience of the nation’s financial institutions against economic shocks and is actively driving a wave of mergers and acquisitions (M&A). The regulatory climate effectively creates an opportunity for well-capitalised regional players like Zenith Bank.
Paramount Bank, a mid-tier lender with a network of eight branches and core capital of Sh2.67 billion, is among those facing pressure to either secure fresh capital injections, merge, or find a strategic investor to meet the escalating capital thresholds. By acquiring Paramount, Zenith Bank is expanding its geographical footprint and expertly capitalising on this regulatory-driven market consolidation.
Zenith Bank’s Financial Strength in 2025
Zenith Bank is entering the new market from a position of considerable financial strength. The bank recently conducted a robust hybrid capital raise, securing roughly N614.65 billion (approximately $350.4 million) via an oversubscribed rights issue and public offer. This successful capital raise not only boosted the bank’s capital base by 160% but also allowed it to comfortably surpass the Central Bank of Nigeria’s (CBN) new minimum capital requirements for banks with international authorisation well ahead of the March 2026 regulatory deadline.
According to unaudited financial results for the nine months ended 30 September 2025, Zenith Bank recorded a healthy 16% year-on-year growth in gross earnings, rising from N2.9 trillion in Q3 2024 to N3.4 trillion in Q3 2025. This growth was largely propelled by a 41% year-on-year surge in interest income to N2.7 trillion. Despite a tightening monetary cycle, the bank managed to maintain a healthy Net Interest Margin (NIM) of 12%, demonstrating strong operational efficiency and pricing power.
The Group Managing Director and CEO, Adaora Umeoji, has repeatedly noted that the bank’s expansion strategy is fundamentally about following their customers’ business into high-growth economies where they can achieve scale and deliver enhanced returns for shareholders. The Kenya deal aligns with this pan-African agenda, which also includes a recent announcement of plans to expand into Côte d’Ivoire and eight other Francophone African countries.
Recently, Olukayode Akinbinu, the head of strategies at Zenith Bank, also confirmed that the bank plans to open in the Ivory Coast this year and Cameroon next.