Zenith Bank Plc, one of Nigeria’s biggest banks by market value, is advancing its pan-African expansion strategy with plans to acquire Kenya’s Paramount Bank, marking the group’s first entry into East Africa.
The Lagos-based financial services giant has formally filed for regulatory approval with the Central Bank of Kenya (CBK) and the Central Bank of Nigeria (CBN), signalling a decisive step toward a transaction expected to be completed by early 2026, according to reports from Business Daily.
The proposed acquisition comes at a time of sweeping regulatory reform in Kenya’s banking sector. Under new prudential guidelines, the CBK will raise the minimum core capital requirement for commercial banks from Ksh3 billion ($23.18 million), rising to Ksh10 billion ($77.28 million) by 2029.
These rising thresholds are accelerating consolidation across the industry, pushing small and mid-sized lenders towards mergers, acquisitions, or fresh capital injections.
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Paramount Bank, whose history dates back to 1993 when it began as Combined Finance Limited, fits into this evolving landscape. The bank transitioned into a full-service commercial lender in 1995 and later expanded its reach through a merger with Universal Bank Ltd in 2000, eventually rebranding as Paramount Bank Ltd in 2005.
Today, it operates eight branches and holds core capital of Ksh2.67 billion, placing it among the institutions under pressure to bolster capital buffers ahead of the 2029 deadline.
Zenith Bank’s interest in Paramount is driven by its recently concluded N350.4 billion capital raise through a rights issue and public offer, which lifted its share capital to N614.65 billion, well above the N500 billion benchmark set by the CBN for banks seeking international expansion. The bank has described the fundraising as a strategic move to strengthen its balance sheet and widen its continental footprint.
During the closing ceremony at the Nigerian Exchange last month, Adaora Umeoji, Group Managing Director and CEO of the bank, said the capital raise had already begun translating into tangible growth initiatives.
“Since the capital raise exercise, we’ve been able to use part of the money to expand our footprints,” Umeoji said. “We started by opening our Paris branch, and we are going to move from there to Côte d’Ivoire, for which we are already processing the license.”
She added that securing a license in Côte d’Ivoire will grant passporting rights into eight Francophone markets, aligning with Zenith’s strategy of following its customers into high-growth economies.
“This expansion strategy is a result of us following our customers’ business and ensuring that we go to countries and economies where we can scale and be able to provide more returns for our shareholders,” she said.