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Zenith Bank Plc, recognized as Nigeria’s second-largest financial institution by asset size, has officially announced that its planned expansion into the Kenyan market is currently pending final regulatory clearance.
This announcement comes in the wake of reports from Kenyan media indicating that Zenith is in advanced negotiations to acquire Paramount Bank Ltd, a mid-sized Kenyan bank. Although Zenith has not publicly disclosed the target bank, a spokesperson confirmed to TechCabal via email: “The Bank’s entry into Kenya is part of our strategic growth plan, with further details to be shared once regulatory approvals are secured.”
Should this acquisition be finalized, it will represent Zenith’s inaugural foray into East Africa, joining the ranks of Nigerian banks such as Access Bank, UBA, and GTBank, which have already established a presence in Kenya as part of their regional expansion strategies. Notably, Access Bank recently completed its acquisition of the National Bank of Kenya, underscoring the growing trend of West African banks seeking growth opportunities beyond their traditional markets.
Regulatory Dynamics and Strategic Expansion
According to Business Daily Africa, the transaction is anticipated to conclude within the coming months, contingent upon approvals from both the Central Bank of Nigeria and the Central Bank of Kenya.
Earlier in July, Kenyan financial news outlets reported that Zenith was in advanced discussions to acquire a tier-two banking institution.
Zenith Bank already maintains operations in Ghana, the United Kingdom, Sierra Leone, and The Gambia, and has recently announced plans to expand into Côte d’Ivoire and Kenya. Henry Oroh, an executive director who has overseen several of Zenith’s international ventures, remarked in a September interview with The Africa Report, “By the time we reached seven years, we were competing with banks that had been established for over a century.”
Kenya’s Financial Landscape: A Strategic Opportunity
Kenya stands as East Africa’s premier financial center, characterized by macroeconomic stability, a relatively steady exchange rate, and a robust GDP exceeding $136 billion. Acquiring an existing bank would provide Zenith with immediate access to an established customer base, experienced personnel, and operational infrastructure-advantages that are critical in a market where organic growth is often slow and capital-intensive. Oroh confirmed that due diligence has been completed on a smaller bank, describing it as “one of the smaller two to three banks” in the market.
This move aligns with a broader trend in Kenya, where smaller banks are under increasing pressure to strengthen their capital bases in compliance with the Central Bank of Kenya’s recapitalization requirements. Enacted through the Business Laws (Amendment) Act in December 2024, the regulation mandates a phased increase in minimum core capital-from KSh 1 billion (approximately $7.7 million) to KSh 3 billion ($24 million) by December 2025, and further to KSh 10 billion ($77 million) by 2029.
As of June 2025, 27 out of 39 licensed banks in Kenya had met these capital requirements, leaving over a dozen institutions seeking mergers, acquisitions, or fresh investment to comply.
By successfully acquiring a Kenyan bank, Zenith would capitalize on this consolidation phase, securing a strategic foothold in East Africa’s dynamic banking sector and joining other Nigerian banks leveraging Kenya’s evolving financial landscape for regional growth.
