Nigerian Banks Are Turning Kenya Into Their Next Growth Hub

Nigeria’s banking giants are pushing into East Africa, with Zenith Bank’s acquisition of Paramount Bank marking the latest move in a steady expansion that has already seen Access Bank buy Transnational Bank and lenders like UBA and GTBank set up shop, intensifying competition for Kenya’s lucrative financial sector

Nigeria’s Zenith Bank Plc has completed the acquisition of 100% of Paramount Bank Limited, marking its entry into Kenya and the wider East African market, the lender said in a statement dated April 7.

The deal follows an earlier disclosure on Nov. 18, 2025, when Zenith Bank said it was pursuing regulatory approvals to acquire the Kenyan lender.

“Further to our publication on November 18, 2025, ZENITH BANK PLC is pleased to announce the completion of its acquisition of the entire issued share capital of Paramount Bank Kenya Limited (PBL or ‘the Target’) following the receipt of all requisite regulatory approvals in Kenya and Nigeria,” the bank said.

Zenith said the acquisition aligns with its long-term growth strategy and strengthens its position in sub-Saharan Africa while providing an entry point into East Africa.

Kenya’s Competition Authority of Kenya approved the transaction in January, saying it was unlikely to reduce competition, but required Zenith to retain all 78 employees of Paramount Bank for at least 12 months.

“The Competition Authority of Kenya has approved the proposed acquisition of 100 percent shareholding of Paramount Bank Limited by Zenith Bank PLC, subject to conditions aimed at safeguarding employment. The approval is based on the Authority’s determination that the transaction is unlikely to lead to a substantial prevention or lessening of competition,” the regulator said.

The acquisition was also approved by the Central Bank of Kenya and the Central Bank of Nigeria.

Founded by Nigerian businessman Jim Ovia in 1990, Zenith operates across West Africa and has subsidiaries in the United Kingdom, United Arab Emirates, China and South Africa.

The bank said the deal would allow it to expand corporate banking, retail, SME lending and trade finance services in Kenya, adding that customers would see continuity in the short term with potential product enhancements over time.

Zenith joins a growing list of Nigerian lenders expanding into Kenya, reflecting rising competition for market share in East Africa’s largest economy. Access Bank Plc entered Kenya through its acquisition of Transnational Bank Plc in 2020 and later rebranded it as Access Bank Kenya as part of its pan-African expansion strategy. United Bank for Africa (UBA) established a presence in Kenya through a subsidiary focused on corporate and cross-border clients, while Guaranty Trust Bank (GTBank) has also set up operations targeting regional trade flows and multinationals.

The entry of Nigerian lenders has intensified competition with local banks and other foreign players, including South Africa’s Nedbank Group, which has strategic ties with NCBA Group. Analysts say the expansion is driven by East Africa’s trade growth, a rising middle class and increasing demand for digital financial services.

Get the latest news and insights that are shaping the world. Subscribe to Impact Newswire to stay informed and be part of the global conversation.

Got a story to share? Pitch it to us at info@impactnews-wire.com and reach the right audience worldwide