Zenith Bank, one of Nigeria’s largest lenders, is poised to make its East African debut after agreeing to acquire Kenya’s Paramount Bank, a move that would make it the fourth Nigerian institution to establish a foothold in the country’s competitive financial sector.
Regulatory approvals are being sought from both the Central Bank of Nigeria and the Central Bank of Kenya, with the deal expected to close by January 2026. Financial terms have not been disclosed.
The acquisition comes as Kenya’s banking landscape undergoes profound change. New rules introduced by the Central Bank of Kenya will require lenders to raise minimum core capital from Sh1 billion to Sh10 billion by 2029, triggering a wave of mergers, fresh equity injections and foreign takeovers.
Paramount, a mid-tier bank with eight branches and core capital of Sh2.67 billion (approximately £14.5 million), has been widely seen as vulnerable under the tighter regime.
If approved, Zenith will join United Bank for Africa, Guaranty Trust Bank and Access Bank in Kenya, intensifying competition at a time when the decade-long moratorium on new banking licences has just been lifted. Analysts expect the Nigerian entrant to target corporate clients and the lucrative diaspora remittance corridor.
The deal forms part of Zenith’s broader continental push. Backed by a N614.65 billion (about Sh1.35 trillion) hybrid capital raise completed last month, the bank has already opened a Paris branch and is finalising a licence in Côte d’Ivoire that will grant passporting rights into eight additional Francophone markets. Group chief executive Adaora Umeoji told investors the strategy is driven by following Nigerian corporate clients into high-growth African economies.
Zenith reported gross earnings of N3.4 trillion (roughly Sh7.5 trillion) for the first nine months of 2025, up 16 percent year on year, helped by a 41 percent surge in interest income despite a tighter monetary environment across the region.
