Nigeria’s Zenith Bank Joins Kenya’s Banking Fray

Mintesinot Nigussie

Nigeria’s Zenith Bank Plc is set to enter Kenya’s competitive banking market after securing approval to acquire 100 percent of Paramount Bank Limited. The Central Bank of Kenya approved the transaction on March 9, 2026, with a subsequent sign-off from the Cabinet Secretary for the National Treasury and Economic Planning on March 16.

The acquisition gives Zenith Bank an entry point into one of Africa’s more developed financial systems. Kenya has long served as a commercial hub for East Africa, drawing interest from lenders seeking to diversify revenue beyond home markets.

Paramount Bank, with seven branches across Nairobi, Mombasa, Kisumu and Eldoret, offers Zenith an established platform. The lender began life in 1993 as a non-bank financial institution before becoming a commercial bank in 1995.

For Zenith, which is listed in Lagos and London and operates across West Africa as well as in the United Kingdom, France and the United Arab Emirates, the acquisition reflects a broader search for scale.

Nigerian banks, facing intense competition at home, have increasingly looked outward, targeting markets with stronger growth prospects and expanding trade links. Kenyan regulators have signalled support for such transactions, framing them as a way to reinforce stability and encourage competition in the sector.

The central bank said the deal would help sustain resilience in the financial system. Businesses in retail, corporate and digital banking are expected to see increased competition and new service options following the entry of Zenith Bank.

The move signals a steady push by West African lenders into East Africa and highlights Kenya’s attractiveness as a regional financial hub.

Overall, Zenith Bank’s acquisition of Paramount Bank marks a significant expansion step for the Nigerian lender and strengthens competition in Kenya’s banking sector.