Zenith Bank Moves to Acquire Kenya’s Paramount Bank in East Africa Expansion

Nigeria’s second largest bank by asset base and market capitalization, Zenith Bank is seeking to acquire Kenya’s Paramount Bank and has sought regulatory approval to proceed with the transaction

Zenith would join other Nigerian banks that have expanded in Kenya, such as Access Bank, which acquired the National Bank of Kenya from the KCB Group in April 2025.

This comes at a time when Kenya’s banking sector is facing major regulatory-driven changes, as Kenyan banks adjust to new Central Bank of Kenya (CBK) capital requirements that are driving sector consolidation.

According to reports, executives from the acquiring bank recently traveled to Nairobi to meet with shareholders. As reported by Business Daily, the transaction is expected to close within months, pending approvals from both the Central Bank of Nigeria (CBN) and the Central Bank of Kenya.

Central Bank of Kenya’s Pressure on Small Lenders

The Central Bank of Kenya has increased the minimum core capital requirement from KSh 1 billion (~$7.7 million) to KSh 3 billion (~$24 million) by December 2025, and further to KSh 10 billion (~$77 million) by 2029.

Smaller banks are now being forced to recapitalise, merge, or sell to comply with these thresholds.

For the Nigerian bank, the strategic entry allows it to acquire an existing institution rather than starting operations from scratch.

Zenith Bank booked profit before tax (PBT) of N168.25 billion from its Africa operations as at 9 Months 2025.

About Paramount Bank Ltd, Kenya

Paramount Bank Ltd began in 1993 as Combined Finance Ltd, a non-bank financial institution.

It obtained a commercial banking license in 1995 and became Paramount Bank Ltd.

In 2000, it merged with Universal Bank Ltd to form Paramount Universal Bank, and in 2005, it reverted to its original name, Paramount Bank Ltd.

The bank joined the SWIFT network in 2003, allowing international money transfers.

Licensed by the Central Bank of Kenya, Paramount Bank is classified as a “small” commercial bank according to CBK’s 2024 report.

The bank operates eight branches across Kenya, including locations in Westlands (Sound Plaza), Nairobi Industrial Area, and Kisumu.

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