Zenith Bank, Nigeria’s second-largest lender by assets and often dubbed “the bank of the rich,” is preparing to expand its footprint into East Africa through the acquisition of a Kenyan tier-2 bank.

The bank is reportedly in advanced negotiations to purchase the institution, a move that would grant it regulatory access to Kenya’s financial sector and escalate its regional competition with fellow FUGAZ members—GTBank, Access Bank, and UBA.

Unlike Access Bank, known for its aggressive mergers and acquisitions strategy, Zenith has traditionally adopted a more conservative approach to expansion. Its existing international operations include branches in the UK, UAE, Ghana, Sierra Leone, Gambia, a representative office in China, and, most recently, a branch in Paris aimed at serving Francophone Africa. The Kenyan deal marks its first foray into East Africa and its first foreign market entry through acquisition.

The timing is strategic. A recent Kenyan law mandates that all banks raise their minimum capital from $21 million in 2025 to $77 million by 2029. As a result, smaller banks—particularly those in the tier-2 category—are facing mounting pressure to merge, recapitalise, or sell to remain viable. Zenith, with a robust capital base of ₦614.65 billion ($402 million) after an oversubscribed rights issue earlier this year, is well-positioned to seize the opportunity.

Industry analysts suggest the move aligns with Porter’s Five Forces framework. Kenya’s tightly regulated banking environment creates high barriers to entry for new players. Acquiring an existing bank not only fast-tracks Zenith’s market entry but also provides a strategic edge over other Nigerian lenders seeking expansion into the region.

Zenith Bank’s approach is not about global dominance, but about making targeted moves in markets with growth potential. Bank executives are scheduled to visit Nairobi within the next three months to finalise the acquisition.