Zenith Bank Plc, the Lagos headquartered financial institution founded by prominent Nigerian banker Jim Ovia, is advancing plans to enter the Kenyan market through the acquisition of Paramount Bank. The lender has already filed with Kenyan regulators for approval, signalling the first step in its entry into East Africa as it aims to service a broader range of corporate and retail customers across the region.
Kenya’s Central Bank is enforcing a sharper increase in capital requirements for commercial banks. The minimum capital must reach 3 billion shillings by 2025, rising further to 10 billion shillings by 2029. This shift is placing pressure on small and mid sized banks to partner with stronger institutions in order to remain competitive. Paramount Bank, founded in 1993 and operating eight branches nationwide, has become one of the more attractive targets for acquisition as the banking sector adjusts to the new capital regime.
Zenith Bank recently secured 350.4 billion naira through a combined rights issue and public offer, which totals close to 230 million dollars. The bank’s share capital now stands at over 614 billion naira, comfortably above the Central Bank of Nigeria’s threshold for institutions with global or regional operations. This financial reinforcement gives Zenith the capacity to expand across emerging African markets.
Broader regional play targets West and Central Africa
Beyond the planned entry into Kenya, Zenith Bank intends to begin operations in Côte d’Ivoire before the end of 2025, followed by Cameroon. The bank’s strategy focuses on diversifying beyond its strong Nigerian base, tapping into fast growing economies where increased trade, infrastructure development and digital financial services offer potential for profitability. Executives say expansion into Francophone markets will also give the bank strategic access to the wider CEMAC bloc.
With regulatory review underway in Kenya and additional market entries being prepared, Zenith Bank is positioning itself as one of Africa’s most assertive cross border banking institutions, seeking scale and competitiveness across the continent’s financial landscape.
