Two Nigerian Banks Acquire Kenyan Lenders in Push to Deepen Continental Footprints
- Kenya emerges as the central battleground for Africa's largest banks amid strategic acquisitions
- Nigerian and South African lenders intensify efforts to solidify their presence in East Africa's banking sector
- Kenya's fintech ecosystem and regulatory reforms boost investor confidence in banking expansion
East Africa is fast becoming the new battleground for Africa’s biggest banks, and Kenya sits firmly at the centre of the fight.
In the space of a single week, two major moves signalled a decisive shift in continental banking strategy, as Nigerian and South African lenders doubled down on Kenya to anchor their pan-African ambitions.
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Zenith Bank secured regulatory approval to enter Kenya through the acquisition of 100 per cent of Paramount Bank, while South Africa’s Nedbank announced plans to buy a 66 per cent stake in NCBA Group, one of Kenya’s top-tier lenders.
The announcements add momentum to a widening rush into Kenya by Africa’s largest financial institutions.
They also underline a clear message: Kenya is no longer just another African market. It is the gateway.
Nigeria’s big banks press forward
Zenith’s move comes as Nigerian lenders race to deepen their continental footprints ahead of the Central Bank of Nigeria’s recapitalisation deadline.
For banks under pressure to raise capital and diversify earnings, regional scale has become both a growth strategy and a survival tool.
Access Holdings, Nigeria’s largest banking group by assets, has already planted a strong flag in Kenya.
In 2025, it completed the acquisition of National Bank of Kenya from KCB Group, five years after buying Transnational Bank, now Access Bank Kenya.
Together, the deals give Access a formidable presence in East Africa’s most sophisticated banking market.
Dubai-based Soren Investment Company also entered the fray last year with the acquisition of Gulf African Bank, Kenya’s largest Islamic lender, reinforcing the country’s appeal to global capital.
Why Kenya is the prize
While Ethiopia’s recent banking liberalisation has drawn intense interest, Kenya remains the continent’s crown jewel.
It offers unmatched scale in East Africa, a deep regulatory framework, advanced fintech adoption, and seamless access to the wider region.
According to Charles Robertson, head of macro-strategy at FIM Partners, Nedbank’s entry aligns with the view that Kenya is poised to be “the next African country to industrialise and take off,” following Egypt and Mauritius.
At roughly $0.9 billion, the NCBA deal alone is equivalent to about 0.6 per cent of Kenya’s GDP, delivering a meaningful boost to foreign direct investment at a time when inflows have softened.
UN Trade and Investment data show FDI into Kenya edged down slightly to $1.503 billion in 2024, highlighting why large-ticket bank investments are being welcomed as confidence signals.
Currency stability restores confidence
The timing of the banking inflows is not accidental. After one of its worst depreciations in three decades, the Kenyan shilling has staged a sharp recovery.
Having lost 21 per cent against the dollar in 2023, the currency rebounded strongly in 2024 and has traded within a relatively stable KSh128–131 range through 2025.
Aggressive tightening by the Central Bank of Kenya, including a 200-basis-point rate hike in late 2023, helped stabilise the market.
Although the IMF has since described the shilling as “excessively stable,” the calmer currency environment has restored investor confidence and improved funding conditions for banks.
Regulation opens the door
Kenya’s regulatory reset has further strengthened its appeal. The government lifted a decade-long moratorium on new commercial bank licences in 2024, while raising minimum capital requirements to KSh10 billion.
The higher threshold favours large, well-capitalised regional lenders and explains why acquisitions, rather than greenfield licences, have become the preferred entry route.
At the same time, several Western banks have scaled back African operations, citing weak risk-adjusted returns.
That retreat has created space for African and Middle Eastern players with longer-term appetites.
A fintech powerhouse with profits to match
Kenya’s biggest draw remains its digital financial ecosystem. With nearly 60 million people, the country is globally recognised as a fintech pioneer.
Mobile money platforms have driven financial inclusion to record levels, with over 90 per cent of adults banked by 2024.
This digital maturity offers pan-African banks a ready-made testing ground for digital lending, payments, and data-driven credit. The results are already visible.
Kenya’s top lenders recorded the strongest brand-value growth in Africa last year, while listed banks posted double-digit profit growth in 2025.
Gateway to a bigger continent
Beyond its domestic market, Kenya offers strategic access to the entire East African Community and serves as a springboard into Ethiopia’s newly opening banking sector. For Nigerian banks under pressure to scale fast, missing out is not an option.
As one major lender moves, others follow. Zenith and Access are not isolated cases. They are early markers in a race that is accelerating fast, with Kenya as the prize no one wants to lose.
"The current continental push by Nigerian lenders underscores the success of the ongoing recapitalisation exercise by the Central Bank of Nigeria (CBN)," Osas Igho, a financial analyst, told Legit.ng on a call.
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Igho said that Nigerian banks, especially the big players, have enough financial muscles to expand and grow their assets on the continent.
"This means the banks have also matured enough to conquer the continent and reposition Nigeria globally," he said.
Providus moves to finalise Unity Bank merger
Legit.ng earlier reported that the long-anticipated merger between Providus Bank and Unity Bank has entered its final phase, with an official announcement expected within weeks, as Nigeria’s banking sector races against the Central Bank of Nigeria’s (CBN) recapitalisation deadline.
Industry sources confirmed that the proposed consolidation is now more than 90 percent complete, placing it among the three major mergers expected to conclude in early 2026 as tier-two lenders scramble to meet stricter capital requirements.
In March 2024, the CBN raised the minimum capital thresholds for Nigerian banks, setting a March 2026 deadline for compliance.
Source: Legit.ng
