Zenith Bank Eyes Kenya Market Entry Amid Rising Capital Pressures
Zenith Bank plots bold Nairobi entry as small lenders feel the squeeze
Nigeria’s Zenith Bank is laying the groundwork for a bold East African expansion, with confidential talks underway to acquire a tier-two Kenyan lender. The move, if finalized, would mark the banking giant’s first entry outside West Africa and deepen the presence of Nigerian banks in Kenya’s rapidly consolidating financial landscape.
Top executives from Zenith are expected in Nairobi within three months to firm up negotiations. The timing is strategic. Kenya’s recent overhaul of its capital requirements is pressuring smaller banks to either raise new funds or consider mergers and acquisitions. The Central Bank of Kenya (CBK) has increased minimum core capital from Sh1 billion to Sh3 billion by end of 2025, and plans to scale this up to Sh10 billion by 2029.
“We’ve been monitoring the market for a while. The regulatory shift presents the right opening for our Pan-African growth strategy,” said a source familiar with the talks.
Zenith Bank, currently Nigeria’s second-largest lender by both asset base and market value, reported Sh2.52 trillion in assets and a market cap of Sh196.95 billion at the end of 2024. To fund its expansion plans, Zenith raised Sh29.49 billion through a heavily oversubscribed rights issue and public offer earlier this year — a signal of investor confidence and readiness for continental moves.
The Kenyan banking space is no stranger to Nigerian entrants. UBA ventured in 2009, Guaranty Trust Bank followed in 2013, and Access Bank has aggressively scaled operations since 2020. Access recently cemented its Kenyan foothold by acquiring National Bank from KCB Group in a deal concluded in April 2025.
Zenith Bank Kenya entry comes just as the CBK lifted a decade-old freeze on new bank licenses, effective July 1, 2025, paving the way for more cross-border entries and competition.
Meanwhile, Kenyan lenders are hustling to stay compliant with the new capital requirements. Ecobank injected Sh3.5 billion into its local unit in March 2025, pushing its capital base to Sh8.5 billion. Family Bank is eyeing an NSE listing in 2026 after its 2023 rights issue.
With 24 out of Kenya’s 39 commercial banks still below the Sh10 billion threshold, Zenith’s entry could kick off a fresh wave of acquisitions — and a new chapter in Kenya’s increasingly Pan-African financial sector.
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