Zenith Bank to Enter Kenya in 2026 With Planned Acquisition of Paramount Bank

Zenith Bank Plc, Nigeria’s second-largest financial institution by assets, is preparing a major strategic expansion into East Africa through its planned acquisition of Kenya’s Paramount Bank. The move marks Zenith Bank’s first entry into the East African market and strengthens its growing pan-African footprint.

The acquisition is expected to be finalised by January 2026, subject to regulatory approval from both the Central Bank of Nigeria (CBN) and the Central Bank of Kenya (CBK). Although the financial terms of the deal have not been disclosed, analysts note that the deal positions Zenith Bank to compete directly with Nigerian rivals such as UBA, GTBank, and Access Bank, all of whom already operate in Kenya.

If approved, Zenith will become the fourth Nigerian lender present in the Kenyan market, adding further competitive pressure to the country’s banking sector.

Implications for Kenya’s Banking Market

Zenith Bank’s entry promises increased competition, which could benefit local consumers and corporations through improved product offerings, pricing options, and access to cross-border banking services.

For Kenya’s financial sector, the move is part of a broader shift where well-capitalised foreign banks, particularly from West Africa, are expanding aggressively across the continent. Analysts expect this trend to accelerate as stronger institutions seek new markets and diversify risk.

Zenith Bank’s expansion is supported by its recent oversubscribed capital raise, giving it the financial strength needed to pursue cross-border acquisitions under Nigeria’s higher capital requirements for banks.

A Strategic Move Amid Kenya’s Sector Restructuring

The timing of Zenith Bank’s acquisition aligns closely with significant regulatory changes in Kenya. The CBK has introduced new prudential rules requiring banks to raise their minimum core capital from Sh1 billion to Sh10 billion by 2029.

This reform aims to strengthen the stability of the sector and encourage consolidation, creating an environment where mergers and acquisitions are increasingly common. The heightened regulatory thresholds provide opportunities for strong regional banks like Zenith to scale quickly and acquire smaller institutions unable to meet the new capital requirements.

A Growing Pan-African Strategy

Zenith Bank’s planned acquisition underscores a broader trend of Nigerian banks expanding their reach across Africa. With tighter domestic regulation and rising capital demands, Nigerian financial giants are leveraging their size, liquidity, and operational capabilities to compete in new markets.

By entering Kenya, one of Africa’s most dynamic banking sectors, Zenith Bank signals its ambition to become a stronger continental player, participating in the reshaping of Africa’s regional banking landscape.