Zenith Bank, Nigeria’s second-largest lender by asset base and market capitalisation, is set to acquire Kenya’s Paramount Bank in a strategic move that deepens its footprint in East Africa and signals growing investor confidence in Kenya’s evolving financial landscape.
Nigerian Banks Deepen East African Presence
Zenith joins Access Bank, which acquired the National Bank of Kenya from KCB Group in April 2025, as part of a broader wave of Nigerian financial institutions expanding into Kenya’s high-growth market.
Executives from Zenith Bank recently travelled to Nairobi to meet with Paramount Bank shareholders. The transaction is expected to close within months, pending approvals from the Central Bank of Nigeria (CBN) and the Central Bank of Kenya (CBK).
Kenya’s Banking Sector Faces Capital Pressure
The CBK has raised minimum core capital requirements from KSh 1 billion by December 2025 to KSh 10 billion (~$77 million) by 2029. This regulatory shift is driving consolidation, forcing smaller banks to recapitalise, merge, or sell.
Zenith Bank reported ₦168.25 billion in profit before tax from its Africa operations as of Q3 2025, reinforcing its capacity to absorb and scale regional assets.
Paramount Bank’s Profile and Market Position
Founded in 1993, Paramount Bank is classified as a “small” commercial bank by CBK. It operates eight branches across Kenya and has a history of mergers, rebranding, and international transaction capability via SWIFT.
Strategic Entry Offers Speed and Scale
By acquiring an existing institution, Zenith avoids the complexities of starting from scratch, gaining immediate access to infrastructure, licensing, and market relationships.
Kenya’s new capital thresholds are reshaping the banking landscape, making acquisitions like Zenith’s a strategic response to regulatory-driven market shifts.
What This Means for Kenya’s Financial Ecosystem
Zenith’s entry could catalyse competition, innovation, and capital flow, especially in SME lending, digital banking, and cross-border trade finance. It also aligns with pan-African ambitions to integrate financial markets and support inclusive growth.
