Jim Ovia’s Zenith Bank eyes Kenyan bank after $230m raise

Lagos-based financial services group Zenith Bank Plc, founded by Nigerian banker Jim Ovia, is moving to expand into East Africa with a proposed acquisition of Kenya’s Paramount Bank. The lender has filed for regulatory approval to proceed with the transaction, signaling its first major step into the Kenyan market, a move aimed at serving the entire spectrum of the market.

Nigerian bank eyes East Africa expansion

Zenith Bank, Nigeria’s second-largest bank by assets and market value, first announced in September that it planned to enter East Africa by acquiring a mid-sized Kenyan bank. The deal is expected to close before the end of 2025, which would mark an important turning point in the bank’s regional growth strategy.

The timing comes as Kenya’s Central Bank increases capital requirements for commercial banks. By 2025, lenders will need Ksh3 billion ($23.18 million), rising to Ksh10 billion ($77.28 million) by 2029. Smaller banks, facing these higher thresholds, are increasingly looking for larger partners to remain competitive, making Paramount Bank a potential acquisition target.

Zenith Bank targets Paramount Bank after $230 million raise

Paramount Bank traces its roots to 1993 when it was founded as Combined Finance Limited, a non-banking financial institution. Two years later, it expanded into a full-service commercial bank. A 2000 merger with Universal Bank Ltd allowed it to broaden its reach, leading to a rebranding as Paramount Universal Bank Limited. By 2005, it became Paramount Bank Ltd and today operates eight branches, including its headquarters, across Kenya.

Zenith Bank’s interest in Paramount comes after a major N350.4 billion ($229.74 million) capital raise through a rights issue and public offer. The move lifted its share capital to N614.65 billion ($402.69 million), surpassing the N500 billion ($327.36 million) threshold set by the Central Bank of Nigeria for banks pursuing international expansion.

Regional growth push for Zenith Bank

In parallel, Zenith Bank has unveiled plans to start operations in Côte d’Ivoire before year-end, with Cameroon to follow. Olukayode Akinbinu, Zenith’s head of strategy, said the Abidjan branch will allow the bank to tap into an economy that has averaged 6.7 percent annual growth over the past five years. The expansion would provide access to the CEMAC bloc, giving Zenith a broader presence across West and Central Africa while diversifying its regional operations.