Nigeria’s Zenith Bank Plc has clarified media reports regarding a proposed acquisition of Kenya’s Paramount Bank. According to the bank, the information in the public domain was not released or authorised by it, and definitive decisions have not been made.
This was disclosed in a statement on the Nigerian Exchange Limited (NGX) and signed by Michael Osilama Otu, Company Secretary of Zenith Bank.
According to the statement, the Tier-1 lender has indeed initiated regulatory engagements to support its strategic expansion into East Africa but no binding transaction has been concluded to date.
“The Bank wishes to formally notify the Nigerian Exchange Limited (NGX), our esteemed shareholders, investors, and the general public that the information currently circulating in the public domain was not released or authorized by the Bank. However, as part of our long-term strategic growth agenda, the Bank is currently exploring various regional expansion opportunities-including within East Africa,” the statement said.
It added that part of the regulatory engagement initiated to achieve the above objective includes, but is not limited to, the acquisition of any financial institution within the East African region.
The bank emphasised that it would strictly adhere to all NGX and SEC regulations regarding disclosure should any reportable transaction occur.
Read also: Zenith Bank to expand into Kenya in 2026 with Paramount Bank acquisition
Backstory to the circulation
On Monday, November 17th, 2025, a report from Business Daily claimed that Zenith Bank was preparing to enter the Kenyan market by acquiring Paramount Bank.
According to them, the deal would see the Nigerian giant take over the mid-tier lender, which holds Sh2.67 billion (N29.79 billion) in capital and operates eight branches. The report also claimed that Zenith is already seeking approval from central banks in both Nigeria and Kenya, with plans to finalise the transaction by January 2026.
“This move would the bank’s first entry into the East African market and is expected to reach completion by January 2026, pending the necessary regulatory approvals from both the Central Bank of Nigeria (CBN) and the Central Bank of Kenya (CBK),” the report said.
While the official deal value remains undisclosed, the transaction offers Zenith a new entry into a market where its major Nigerian competitors, including UBA, GTBank, and Access Bank, have already established a significant presence.
Kenya’s current position
Kenya’s banking sector is currently undergoing significant regulatory transformation. The Central Bank of Kenya has announced plans to raise the minimum core capital requirement for banks from Sh1 billion (N11.16 billion) to Sh10 billion (N111.58 billion) by 2029.
This shift is expected to trigger a wave of mergers, acquisitions, and capital restructuring across the industry. Institutions like Paramount Bank are under pressure to recapitalise, making them attractive targets for strategic investors like Zenith Bank.
If the acquisition is approved, Zenith Bank will become the fourth Nigerian lender to operate in Kenya, joining UBA, GTBank, and Access Bank. This increased Nigerian presence is expected to significantly intensify competition in the Kenyan banking sector.
Read also: Zenith Bank eyes Ivory Coast, Cameroon expansion after N350bn capital raise
Zenith Bank’s plans for expansion
Zenith Bank is entering the new market from a position of considerable financial strength. Sometime in August, it announced plans to expand its operations into the Francophone African region, beginning with the Ivory Coast, just weeks after successfully raising N350.4 billion through a combined rights issue and public offer.
The lender disclosed that it is currently evaluating whether to acquire an existing financial institution or establish a completely new operation in the country. Beyond the Ivory Coast, the bank also expressed its intention to establish a presence in Cameroon and accelerate its strategic entry into the Kenyan market.
According to Olukayode Akinbinu, Zenith Bank’s Head of Strategy, the Ivory Coast subsidiary is expected to commence operations later this year, with plans for Cameroon to follow as soon as possible.
Regarding the funding for this growth, the bank stated that it would allocate 40% of the N350.4 billion raised in July to these expansion projects. Zenith Bank highlighted that this capital injection has pushed its total share capital to N614.65 billion, surpassing the Central Bank of Nigeria’s (CBN) new N500 billion minimum requirement for international lenders by N114.65 billion.
