The Competition Authority of Kenya (CAK) has approved the acquisition of Kenya’s Paramount Bank by Nigeria’s Zenith Bank Plc, on condition that the Lagos-headquartered lender retains current staff for at least a year.
The parties were obligated to disclose the transaction to the competition watchdog, as the impending deal qualifies as a merger under the Competition Act.
In its determination, the CAK stated that the transaction would not prevent competition within the banking industry or result in negative public interest concerns.
“Premised on the foregoing, the Authority approved the proposed acquisition of 100 percent shareholding of Paramount Bank Limited by Zenith Bank Plc, on condition that the acquirer retains the target’s 78 employees for at least 12 months following the completion of the transaction,” CAK said in a statement.
Zenith Bank, the second-largest lender by asset base and market capitalisation in Nigeria, sought regulatory approval in November 2025 to acquire a 100 percent stake in the local lender, marking its entry into Kenya and the East Africa region.
The lender is set to become the fourth bank from Nigeria to enter the Kenyan market after United Bank of Africa (UBA), Guaranty Trust Bank (GT) and Access Bank.
The competition regulator said the transaction is expected to strengthen the financial position of the small lender, ensuring its compliance with enhanced core capital requirements.
The lender raised Sh332 million from its existing shareholders in November through a rights issue and pushed its core capital above Sh3 billion, the first hurdle of the enhanced core capital requirements set by the Central Bank of Kenya (CBK).
Paramount’s core capital rose to Sh3.11 billion at the end of September 2025 from Sh2.75 billion in June.
Banks’ core capital requirements were revised upwards from Sh1 billion to Sh3 billion as at the end of December 2025, Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028 and Sh10 billion by December 31, 2029.
Paramount Bank was classified as a Tier III bank and ranked 33rd out of 39 banks at the end of 2024, according to an industry analysis by CBK.
In addition to offering banking services, Paramount Bank controls Paramount Bancassurance Intermediary Limited and PB Capital Limited, an investment banking subsidiary.
