Starlink expands its business, establishing in Lagos city
Zenith Bank, Nigeria's second-largest lender, is set to make its first foray into East Africa with an acquisition of a Kenyan tier-two bank. This strategic move is part of Zenith's broader Pan-African growth strategy, capitalising on its strong financial position following a recent rights issue.
The acquisition plans are driven by regulatory shifts in Kenya that have increased capital thresholds, compelling smaller banks to consolidate. Zenith Bank sees Kenya as an attractive and strategic market opportunity due to these changes and Kenya's growing banking sector.
Currently, Zenith Bank is in confidential talks with a Kenyan tier-two lender, with senior executives expected to visit Nairobi within the next three months to advance negotiations. The acquisition aligns with the timing of Kenya’s recent regulatory changes that have increased capital requirements for banks. The Central Bank of Kenya (CBK) raised the minimum core capital from Sh1 billion to Sh3 billion by the end of 2025 and plans to further raise it to Sh10 billion by 2029.
Zenith Bank's financial strength, bolstered by a large capital base following an oversubscribed rights issue, enables the bank to move quickly in this acquisition. The expansion is a significant step for Zenith Bank, deepening the footprint of Nigerian banks in East Africa alongside other Nigerian players like Access Bank, GTBank, and UBA.
Meanwhile, in Ethiopia, Better Auth, a startup, secured $5M in seed funding. Elsewhere in the tech scene, Starlink has resumed direct shipments of residential kits in Nigeria after a 7-month pause and opened a walk-in centre in Victoria Island. The physical space in Nigeria boosts Starlink's brand's legitimacy and improves customer support, signalling a long-term commitment to the market and serving as a community hub for events, education, and deepening local connections.
In other news, All Talentz, a Nigerian outsourcing and workforce solutions company, launched a tech Hackathon. Over 4,000 tech leaders gathered for the third Africa Technology Expo (ATE) in Lagos. MEST Africa opened applications for its 2026 AI Startup Programme, and applications are still open for the 2025 FATE Institute Fellowship.
In the realm of cybersecurity, it has been noted that it will become a matter of national priority for Africans, according to Franck Kié. Insights Market Researcher, a tool for finding and analyzing African tech and business data, is being launched.
However, some challenges persist. Afreximbank's rating was downgraded again, and Stanbic Bank Kenya is looking to raise $100 million to invest in startups across East Africa through its Catalytic Fund. Despite losing 6,000 subscribers over six months, Starlink is not slowing down and is expanding into other African markets.
In Algeria, Talenteo, an HR-tech company, raised an undisclosed six-figure round of funding. Liquify, a Ghanaian startup, raised an oversubscribed $1.5 million seed round of funding.
As the African tech and banking sectors continue to evolve, Zenith Bank's strategic move into Kenya marks an exciting development in the continent's growing economic landscape.
- Zenith Bank's acquisition of a Kenyan tier-two bank signals its entry into mobile payments, Fintech, Climatetech, and Healthtech sectors in East Africa.
- The bank's strong financial position, bolstered by substantial funds raised through a recent rights issue, is crucial for its venture capital investments in digital transformation and technology.
- The growing Climatetech, Fintech, and Healthtech startup ecosystems in Kenya, coupled with regulatory shifts, present a viable entrepreneurship opportunity for Zenith Bank's innovative strategies.
- The increased capital thresholds in Kenya have been driving consolidation among smaller banks, making them lucrative acquisition targets for established players like Zenith Bank.
- Cybersecurity will become a critical concern for African nations, as noted by Franck Kié, necessitating Smart solutions from Fintech and Cybersecurity startups to ensure digital transformation's smooth progression in the continent's business sector.
- Startups like Better Auth in Ethiopia and Liquify in Ghana are benefiting from venture capital funding, contributing to the growth and innovation in Africa's tech and business landscape.
- The Central Bank of Kenya's efforts to raise minimum core capital requirements for banks is expected to encourage mergers and acquisitions, thus promoting the efficiency of payments in the region.
- Cloud-based solutions and services are likely to play a pivotal role in the digital transformation of African businesses, offering scalable and cost-effective alternatives to traditional infrastructures.
- As the African banking and tech sectors continue their rapid growth, the acquisition of Zenith Bank in Kenya serves as an illustration of the potential for Fintech, transactions, and financial service innovation across the continent.
