Zenith Bank Plc is strengthening its presence in East Africa following its acquisition of Paramount Bank Kenya, as the Nigerian lender seeks to diversify earnings and expand its operations beyond its domestic market.
The development follows a meeting between Musalia Mudavadi, Kenya’s Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, and Nosa Awusa, a senior manager at Zenith Bank Group and incoming chief executive officer of Zenith Bank Kenya.
The discussions focused on the bank’s plans for the Kenyan market, although details of its proposed investments and operational expansion have not yet been disclosed.
Zenith acquired 100 per cent of Paramount Bank Kenya Limited in the second quarter of 2026, giving it an established presence in one of East Africa’s major financial markets.
Mudavadi described Kenya as a strategic gateway to East and Central Africa, citing its established banking infrastructure, regional trade links and growing digital financial services sector.
He added that Nairobi’s position as a centre for banking, investment and international business makes the country attractive to African financial institutions seeking to expand across borders.
The discussions come amid efforts to deepen regional integration and increase trade between African economies, creating opportunities for banks that can finance businesses operating in multiple markets.
Paramount acquisition opens East African market
The acquisition provides Zenith with an existing banking operation in Kenya rather than requiring it to establish a new institution from the ground up.
Paramount Bank, a Tier III lender, reported core capital of KSh3.118 billion in November 2025 after raising additional funds from shareholders, meeting the Central Bank of Kenya’s minimum core capital requirement of KSh3 billion.
The Competition Authority of Kenya approved the acquisition in January 2026, removing a major regulatory hurdle.
As part of the approval conditions, Zenith is required to retain Paramount Bank’s 78 employees for at least 12 months following completion of the transaction.
The acquisition gives Zenith an opportunity to build relationships with Kenyan consumers and businesses while exploring financing opportunities linked to regional trade and investment.
However, the scale of additional investment and the bank’s future operational plans remain unclear.
Zenith targets more earnings from international markets
Zenith’s expansion into Kenya forms part of a broader strategy to reduce its reliance on Nigeria, which has historically contributed as much as 90 per cent of the group’s earnings.
The bank aims to generate up to half of its profits outside Nigeria over the medium term as it expands its international operations.
Foreign subsidiaries contributed 27 per cent of the group’s profit in the first nine months of 2025, compared with 14 per cent in 2024.
Beyond Kenya, Zenith has also indicated plans to expand into Ethiopia, Africa’s second-most populous country, as it seeks to build a broader continental footprint.
The strategy reflects a wider trend among African banks seeking new customer bases, trade corridors and revenue opportunities outside their home markets.
However, expansion across different jurisdictions exposes lenders to varying regulatory requirements, competition and operating risks. Integrating acquisitions and building profitable local operations will therefore be critical to Zenith’s strategy.
Strong earnings support expansion plans
Zenith’s international ambitions are supported by its financial performance and capital position following Nigeria’s banking recapitalisation exercise.
The group reported profit after tax of ₦1.04 trillion for the 2025 financial year, compared with ₦1.03 trillion in 2024, maintaining its position among Nigeria’s leading lenders by profitability.
In January 2025, the bank raised ₦350.4 billion, increasing its paid-up capital to ₦614.6 billion.
The stronger capital base provides additional capacity to pursue acquisitions and investments in foreign markets. The key challenge will be converting that financial strength into sustainable earnings from its international subsidiaries.
For Kenya, Zenith’s acquisition of Paramount Bank and its engagement with the government could strengthen financial links between East and West Africa.
The longer-term impact will depend on the scale of its investment, the development of its Kenyan operations and its ability to compete in the country’s established banking sector.
