Nigeria’s Zenith Bank Plc has won regulatory approval to acquire 100% of Kenya’s Paramount Bank Ltd, clearing the way for the lender’s entry into the East African market.
Kenya’s Competition Authority (CAK) said the transaction does not raise competition concerns but imposed conditions barring immediate staff layoffs following the acquisition.
The deal is the first major bank acquisition in Kenya this year and comes as the Central Bank of Kenya tightens capital requirements, raising minimum core capital to 10 billion shillings ($77 million) by 2029 from 1 billion shillings currently.
Paramount Bank, a Tier 3 lender with about 0.2% market share, met the interim 3 billion shilling capital threshold at the end of 2025 but faced pressure to secure a strategic investor to meet the higher long-term requirement.
For Zenith Bank, which is listed in Nigeria and London, the acquisition expands its footprint beyond West Africa, adding to existing international operations in the United Kingdom, the United Arab Emirates and China.
The transaction includes Paramount’s insurance and investment subsidiaries, giving Zenith an immediate presence in Kenya’s bancassurance and capital markets segments.
Zenith joins other Nigerian lenders operating in Kenya, including Access Bank, United Bank for Africa and Guaranty Trust Bank, underscoring the country’s growing appeal as a regional banking hub.
Industry analysts say the acquisition highlights accelerating consolidation among smaller Kenyan banks as regulators push to strengthen the sector’s capital base.
