Nigeria's Zenith Bank is negotiating the acquisition of a mid-sized Kenyan bank, marking its first expansion into East Africa, sources familiar with the matter confirmed.
Local media in Nairobi report that senior Zenith executives are leading the talks. The deal is expected to close within three months, pending regulatory approvals.
A source quoted by Techtrends stated that Zenith has been monitoring Kenya for some time. The changing regulatory landscape now provides a strategic opportunity to enter this high-potential market.
This move comes as the Central Bank of Kenya (CBK) pushes a strict recapitalization agenda. In a bid to strengthen banking stability and governance, the CBK now requires all banks to raise their capital to $24 million by the end of 2025, and to $77 million by 2029. The current minimum stands at $7.7 million.
Out of the 39 banks operating in Kenya, 12 tier-two institutions have yet to meet the 2025 benchmark. These banks must raise capital, merge, or sell. This opens the door for stronger foreign institutions—like Zenith—to expand by acquiring distressed or undercapitalized players.
Expanding Across the Region with Stronger Financial Resources
Zenith Bank joins other Nigerian lenders already active in Kenya. Over the last five years, United Bank for Africa (UBA) and Guaranty Trust Bank (GTBank) have entered the Kenyan market, showcasing West African banks’ push beyond their borders. In April 2025, Access Bank finalized its acquisition of National Bank of Kenya (NBK), part of the KCB Group. Regulators in both countries approved the deal, and some NBK assets transferred to KCB Bank Kenya under local banking laws.
Zenith possesses the financial strength to pursue local acquisitions. In January 2025, it raised $228 million through a rights issue and an oversubscribed public offering. This boosted its total capital to $402 million, surpassing the Central Bank of Nigeria’s $327 million regulatory minimum. Its total assets now stand at $29.6 billion.
Looking beyond Kenya, Zenith targets Cameroon and Côte d’Ivoire. After launching a Paris branch in November 2024, the bank plans to expand into Francophone Africa, starting with these two countries in West and Central Africa.
Audited 2024 results show Zenith posted a pre-tax profit of 1.3 trillion naira ($849 million), a 67% increase from 2023. This strong financial footing enhances its ability to invest in markets like Kenya, where regulatory pressures push some banks to merge or exit.
This article was initially published in French by Chamberline Moko
Edited in English by Ange Jason Quenum
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