Physical Address
60 Ekwema Cres, Layout 460281, Imo
Zenith Bank Plans to Acquire a Tier-two Lender in Kenya Within the Next 3 Months
Zenith Bank plans to acquire a tier-two lender in Kenya as part of its strategic expansion into East Africa. This move marks the Nigerian banking giant’s first entry into the Kenyan market, following in the footsteps of other Nigerian banks that have already established a presence in the region. According to reports, top executives from Zenith Bank are expected to finalize talks in Nairobi within the next three months, signaling a significant step in the bank’s Pan-African growth strategy.
Kenya’s banking sector is currently undergoing a major restructuring, driven by new capital requirements set by the Central Bank of Kenya (CBK). The CBK has increased the minimum core capital requirement for banks from $7.7 million (Ksh1 billion) to $24 million (Ksh3 billion) by the end of 2025, with plans to further raise it to $77 million (Ksh10 billion) by 2029. This regulatory shift is putting pressure on smaller banks, especially tier-two and tier-three lenders, to either raise fresh capital or consider mergers and acquisitions to survive.
Read Next: Nigerian Court Upholds NIBSS’s Right to Manage the BVN Database
Zenith Bank plans to acquire a tier-two lender in Kenya at a time when many smaller Kenyan banks face the challenge of meeting these higher capital thresholds. Currently, 27 of Kenya’s 39 licensed banks have met the 2025 capital requirement, while the remaining 12, mostly smaller banks, are under pressure to recapitalize, merge, or sell[1]. This environment creates an ideal opportunity for a well-capitalized foreign bank like Zenith to enter the market through acquisition.
Zenith Bank of Nigeria is well positioned for this expansion after raising about $228 million in January through a dual rights issue and a public offer that was oversubscribed by 160%. This capital raise boosted Zenith’s capital base to $402 million, comfortably above the Central Bank of Nigeria’s minimum capital requirement of $327 million. The bank’s total assets now stand at $29.6 billion, reflecting its strong financial position.
The bank’s 2024 financial results further demonstrate its robust performance. Zenith Bank recorded an 86% growth in gross earnings, rising from N2.13 trillion in 2023 to N3.97 trillion in 2024. Profit before tax increased by 67%, reaching N1.3 trillion, driven by a 138% increase in interest income and growth in its loan book. These figures highlight Zenith Bank’s strong core banking operations and its ability to grow earnings despite challenging economic conditions.
Zenith Bank to acquire a tier-two lender in Kenya also follows a trend of Nigerian banks expanding into East Africa. Over the past five years, Nigerian banks like United Bank for Africa (UBA) and Guaranty Trust Bank (GTBank) have entered the Kenyan market, seeking growth opportunities beyond West Africa. More recently, Access Bank, Nigeria’s largest bank, received regulatory approval to acquire National Bank of Kenya from KCB Group, further illustrating the growing presence of Nigerian banks in Kenya.
Analysts expect more cross-border acquisitions as the combination of increased capital requirements and fresh capital raised by foreign banks accelerates consolidation in Kenya’s banking sector. Foreign lenders, especially from West Africa, view the recapitalization deadline as a key entry point into one of Africa’s fastest-growing markets.
Zenith Bank plans to acquire a tier-two lender in Kenya within the next three months, shows its strong financial position and the regulatory changes in Kenya to establish a foothold in East Africa. This move is part of a broader wave of Nigerian banks expanding regionally, driven by the need for growth and the opportunities created by Kenya’s banking sector reforms. Smaller Kenyan banks will soon face critical decisions to meet new capital requirements, making mergers and acquisitions like Zenith Bank’s planned acquisition increasingly likely.
Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.
