Zenith Bank enters Kenya with Paramount Bank acquisition

Zenith Bank Nigeria PLC has finally received regulatory clearance from the Competition Authority of Kenya (CAK) to acquire a 100% shareholding in Paramount Bank Limited, a mid-tier lender in Kenya.

This was disclosed in a statement on Thursday through CAK’s official X (formerly Twitter) page, stating that the approval is subject to conditions aimed at safeguarding employment.

“The approval is conditional, where Zenith must retain all 78 Paramount employees for at least 12 months after the deal is completed, with CAK framing employment as the key public-interest issue rather than competition risk,” the regulator said in a statement.

This measure ensures that the transition period does not negatively impact the domestic labour market while the new owners integrate operations.

It added that the transaction is intended to strengthen Paramount Bank’s financial position, support long-term compliance with Kenya’s enhanced core capital requirements and reduce the lender’s reliance on ad hoc shareholder capital injections.

However, this decision follows months of market anticipation as Zenith Bank seeks to join its primary West African rivals, who have already established significant footprints within the Kenyan banking sector.

The approval is strictly conditional, primarily focusing on the preservation of local jobs. The regulator determined that while the acquisition does not pose a threat to market competition, the potential for staff redundancies presented a notable public interest concern. 

Consequently, Zenith Bank, which maintains a market capitalisation of approximately ₦2.88 trillion, is legally required to retain all 78 of Paramount Bank’s current employees for a minimum period of 12 months following the completion of the merger. 

Read also: Zenith Bank to expand into Kenya in 2026 with Paramount Bank acquisition

Zenith Bank Building

Zenith Bank’s first announcement about the acquisition

Reports of Zenith Bank’s expansion first surfaced in July 2025, detailing a major strategic expansion into East Africa through the planned acquisition of Kenya’s Paramount Bank.

While the specific financial terms of the deal were undisclosed, the transaction is expected to reach full completion by January 2026. This timeline remains contingent upon the necessary regulatory approvals from both the Central Bank of Nigeria and the Central Bank of Kenya. 

By entering this market, Zenith Bank effectively positions itself to compete directly with its primary Nigerian rivals, such as UBA, GTBank, and Access Bank, all of whom have already established a robust and significant presence within the Kenyan banking landscape

Strategic financial stability sits at the heart of this transaction, as Paramount Bank currently operates as a Tier III lender, ranked 33rd out of the 39 licensed banks in Kenya as of late 2024. 

The deal is intended to provide a necessary capital cushion, helping the bank comply with Kenya’s increasingly stringent core capital requirements and reducing its historical dependence on ad hoc shareholder injections. 

By absorbing Paramount, Zenith Bank introduces its robust corporate and retail banking expertise into a market that is rapidly evolving through digital and mobile banking innovations.

Adaora Umeoji, GMD/CEO of Zenith Bank Nigeria

What this means for Zenith Bank

Zenith Bank’s entry into Kenya marks a high-stakes move into a territory where other Nigerian institutions, such as UBA, GTBank, and Access Bank, are already firmly entrenched. 

While Zenith is already a global player with operations in the United Kingdom, France, the UAE, China, and several West African nations, this acquisition provides the specific regulatory gateway needed to tap into the East African economic hub. 

The transaction includes not only Paramount’s core banking services but also its insurance intermediary and investment banking subsidiaries, PB Capital and Paramount Bancassurance.

Despite this major hurdle being cleared, the acquisition is not yet finalised. The transaction still awaits the necessary green light from both the Central Bank of Kenya and the Central Bank of Nigeria to ensure full compliance with cross-border banking regulations. 

Industry reports suggest that the deal is on track for completion by January 2026, at which point Zenith Bank will officially commence its mission to challenge the established order in Kenya’s competitive financial landscape.

Read also: Nothing definitive: Zenith Bank clarifies East Africa expansion

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