Zenith Bank Plc has confirmed that it has initiated regulatory engagement as part of its broader strategic objective to expand into the East African financial ecosystem.
The bank clarified that while it is actively exploring regional growth opportunities, including the potential acquisition of financial institutions in East Africa, no definitive transaction has been concluded at this time.
In a statement issued to the Nigerian Exchange Limited (NGX), shareholders, investors, and the general public, and signed by the Company Secretary, Michael Osilama Otu, Zenith Bank addressed recent media reports suggesting it is in the process of acquiring Kenya’s Paramount Bank.
“The information currently circulating in the public domain was not released or authorized by the Bank,” the statement read. However, the bank acknowledged that it “is currently exploring various regional expansion opportunities—including within East Africa,” adding that “regulatory engagement has been initiated with respect to achieving the above objective, including but not limited to acquisition of any financial institution within the East Africa region.”
Entry into the Kenyan market
The clarification comes amid reports that Zenith Bank is poised to enter the Kenyan market through the acquisition of Paramount Bank, a mid-tier lender with a core capital of Sh2.67 billion (N29.79 billion) and a network of eight branches.
According to reports by Business Daily, the Nigerian banking giant is seeking approvals from both the Central Bank of Nigeria and the Central Bank of Kenya, with a potential deal completion targeted for January 2026.
While Zenith Bank has not confirmed these details, the timing aligns with its broader pan-African growth strategy.
Kenya’s regulatory transformation
Kenya’s banking sector is currently undergoing significant regulatory transformation. The Central Bank of Kenya has announced plans to raise the minimum core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029.
This shift is expected to trigger a wave of mergers, acquisitions, and capital restructuring across the industry. Institutions like Paramount Bank are under pressure to recapitalize, making them attractive targets for strategic investors like Zenith Bank.
If the acquisition proceeds, Zenith Bank would become the fourth Nigerian lender to establish operations in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank.
More insight
The move would also coincide with the lifting of a decade-long moratorium on new banking licenses in Kenya, further opening the door for regional integration.
Zenith’s East African ambitions follow its recent announcement to expand into Côte d’Ivoire and eight other Francophone African countries, supported by a N614.65 billion hybrid capital raise that boosted its capital base by 160%.
