Kenya’s competition regulator clears Zenith Bank’s Paramount acquisition

The Competition Authority of Kenya (CAK) has approved Zenith Bank Plc’s proposed acquisition of 100% of Paramount Bank Limited, a mid-tier lender, clearing a key regulatory hurdle for the Nigerian lender’s entry into East Africa’s biggest financial market.

The approval, issued on Thursday, is conditional on Zenith, with a market capitalisation of ₦2.88 trillion ($2.03 billion), retaining all 78 Paramount Bank employees for at least 12 months after the completion of the transaction. The CAK said the deal poses no competition risks but flagged employment as the main public interest concern tied to the transaction.

“The Authority has approved the proposed acquisition… on condition that the acquirer retains the target’s 78 employees for at least twelve months following completion,” the regulator said in its decision.

The approval follows months of market speculation over Zenith’s strategy in Kenya and comes as smaller Kenyan banks scramble to meet tougher capital requirements. The deal still requires clearance from the Central Bank of Kenya (CBK) and Nigerian regulators before it can close.

The financial structure of the deal remains undisclosed, but in 2025, Access Holdings paid $109.6 million to acquire the National Bank of Kenya (NBK) from KCB Bank Group. 

In November 2025, Zenith told TechCabal that its Kenya move was part of an ongoing expansion drive and that details would follow regulatory approvals. An acquisition gives the bank immediate access to licences, staff, and customers in a market where starting from scratch can take years.

Zenith is listed on the Nigerian and London stock exchanges, and has no existing banking operations in Kenya. Paramount Bank is a Tier III lender ranked 33rd out of 39 licenced banks as of December 2024, according to the CAK. It also controls a bancassurance arm and an investment banking subsidiary.

The authority noted that the transaction would not change the existing market structure or concentration because Zenith has no Kenyan subsidiary. Post-merger, Paramount’s market share remains unchanged, with rival banks controlling more than 99.8% of the market.

The CAK defined the relevant product market as banking services and the geographic market as national, reflecting Paramount’s countrywide footprint. It concluded the deal was “unlikely to lead to substantial prevention or lessening of competition.”

The acquisition is part of Zenith’s broader push beyond West Africa, as Nigerian banks hunt for growth outside crowded home markets. Rivals, including Access Bank, United Bank for Africa (UBA), and GTBank, already operate in Kenya. Access Bank completed the takeover of National Bank of Kenya (NBK) in 2025.

Meanwhile, Kenyan lenders are under pressure from a recapitalisation framework introduced through the Business Laws Amendment Act in December 2024. The law required banks to raise minimum core capital from KES 1 billion ($7.7 million) to KES 3 billion ($23.2 million) by December 2025, and to KES 10 billion ($77.5 million) by 2029.

As of December 2025, 10 of Kenya’s 39 licenced banks had not met the first threshold, leaving them seeking investors, merger partners, or buyers.

With competition clearance now secured, the focus shifts to central bank approvals and the timing of deal completion. If finalised, Zenith will gain a strategic foothold in East Africa at a time when regulation is driving consolidation across Kenya’s banking sector.