Zenith Bank Plc is poised to make its debut in East Africa via the acquisition of Kenya’s Paramount Bank, marking a strategic milestone in its pan-African progress agenda.
The Nigerian banking large is at the moment searching for regulatory approvals from each the Central Bank of Nigeria and the Central Bank of Kenya, with a focused completion date of January 2026, based on a report by Enterprise Day by day.
Whereas the monetary phrases of the deal stay undisclosed, the transfer indicators Zenith Bank’s intent to deepen its continental footprint amid shifting regulatory setting.
CBK capital elevate
The acquisition comes at a time when Kenya’s banking sector is present process vital transformation. New prudential tips launched by the Central Bank of Kenya will elevate the minimal core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029.
This regulatory overhaul is predicted to catalyze a wave of mergers, acquisitions, and capital injections throughout the trade.
Paramount Bank, a mid-tier lender with core capital of Sh2.67 billion (N29.79 billion) and a community of eight branches, is amongst establishments dealing with stress to recapitalize. Choices embrace retained earnings, recent fairness, or strategic partnerships—making Zenith Bank’s supply well timed and doubtlessly transformative.
If authorised, Zenith Bank would change into the fourth Nigerian lender to function in Kenya, becoming a member of United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank. The deal additionally coincides with the lifting of a decade-long moratorium on new banking licenses in Kenya, additional opening the door for regional integration.
Zenith’s entry is predicted to accentuate competitors in Kenya’s banking sector, providing prospects and corporates extra selections in pricing and merchandise. It additionally displays a broader pattern towards consolidation, as well-capitalized regional gamers search to unfold danger and scale operations throughout borders.
Enlargement to different African international locations
This East African push follows Zenith Bank’s latest announcement of plans to broaden into Côte d’Ivoire and eight different Francophone African international locations. The enlargement is backed by a strong N614.65 billion hybrid capital elevate, which elevated the bank’s capital base by 160%.
Talking on the closing gong ceremony on the Nigerian Alternate (NGX) final month, Group Managing Director and CEO Adaora Umeoji emphasised the strategic significance of the capital elevate.
“For the reason that capital elevate train, we’ve been ready to make use of a part of the cash to broaden our footprints. We began by opening our Paris department, and we’re going to transfer from there to Côte d’Ivoire, which we’re already processing the license,” Umeoji mentioned.
She added that the Côte d’Ivoire license would grant Zenith passporting rights into eight further Francophone markets, aligning with the bank’s technique to observe its prospects into high-growth economies.
“This enlargement technique is a results of us following our prospects’ enterprise and guaranteeing that we go to international locations and economies the place we are able to scale and be capable of present extra returns for our shareholders,” she defined.
What you must know
In its unaudited monetary outcomes for the 9 months ended 30 September 2025, Zenith Bank recorded a 16% year-on-year progress in gross earnings from N2.9 trillion in Q3 2024 to N3.4 trillion in Q3 2025.
- In keeping with the monetary outcomes offered to the Nigerian Alternate (NGX), the expansion in gross earnings was pushed by a sustained progress in curiosity earnings, which grew by 41% year-on-year to N2.7 trillion.
- Regardless of the rise in curiosity expense by 22% to N814 billion on the again of a tightening financial cycle and a progress within the Bank’s funding base, the Bank was capable of obtain a wholesome Internet Curiosity Margin (NIM) of 12% as towards 10% in September 2024. Non-interest earnings declined by 38% to N535 billion, underpinned by a 60% decline in buying and selling beneficial properties.