Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s Zenith Bank is about to enter the Kenyan market, with talks reportedly underway to acquire a tier-2 bank.

The move, if consummated, will mark Zenith Bank’s first foray into the growing Kenyan market and outside West Africa, and will deepen Nigerian banks’ presence in Kenya.

According to reports, top officials from Zenith Bank are expected in the Kenyan capital, Nairobi, in three months to ramp up negotiations.

The development comes amid Kenya’s recent restructuring of its capital requirements, which is pressuring smaller lenders to either raise new funds or consider M&As.

Kenya’s apex bank, the Central Bank of Kenya (CBK), has raised the minimum capital from Sh1 billion to Sh3 billion by the end of this year, and plans more increase to Sh10 billion by the end of 2029.

Zenith Bank is one of Nigeria’s biggest banks by asset base and market value. The bank recently surpassed the N500 billion recapitalisation requirement set by the Central Bank of Nigeria (CBN).

Nigerian banks have up to March 31, 2026, to complete the capital raising, with several lenders aggressively pursuing new capital from private placements and share sales.

Zenith Bank recently concluded a hybrid capital raise, successfully securing N350.46 billion through a combination of a rights issue and a public offer. 

This initiative was undertaken to meet the Central Bank of Nigeria's (CBN) increased capital requirements and to strengthen the bank's financial position. 

The offer was oversubscribed, with both the rights issue and public offer exceeding their targets.

Experts have said that the Kenyan banking industry has recorded more Nigerian lenders entering its ecosystem.

UBA entered the market in 2009, followed by Guarantee Trust Bank in 2013, and Access Bank has increased its operations since it entered the market in 2020.

Access Bank solidified its footing by acquiring National Bank from KCB Group in a deal that was finalised in April 2025.

The entry of the Nigerian lender comes as Kenya’s central bank lifted a 10-year-old freeze on new bank licenses, effective July 1, 2025, giving way for more entries and competition.

Business Daily reported that Kenyan banks are trying to stay compliant with the new capital requirements.

According to the report, Ecobank injected Sh3.5 billion into its local unit in March this year, pushing its capital base to Sh8.5 billion.

Analysts say Zenith Bank’s proposed entry could trigger a fresh wave of acquisitions and a new era in Kenya’s increasingly Pan-African financial industry.

Legit.ng earlier reported that Nigeria’s banking giant, Access Bank, had completed the takeover of Standard Chartered Bank in The Gambia.

The takeover on June 13, 2025, would see Standard Chartered Bank cease to operate in The Gambia after 130 years of operations.

The governor of the Central Bank of The Gambia, Buah Saidy, disclosed this recently during a press conference at The Gambia’s apex bank’s headquarters in Banjul.

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Source: Legit.ng