Zenith Bank Plc has officially completed its acquisition of Paramount Bank Kenya Limited. The deal, which has received full regulatory approval from authorities in both Nigeria and Kenya, sees Zenith Bank taking 100% ownership of the Kenyan bank.
With this move, Zenith Bank becomes the fourth major Nigerian financial powerhouse to establish a footprint in Kenya, joining the ranks of Access Bank, United Bank for Africa (UBA), and Guaranty Trust Bank (GTBank).
Zenith Bank noted that the acquisition is a pivotal step in its follow-the-client strategy, aimed at supporting its corporate customers as they expand across Sub-Saharan Africa. By securing a presence in Nairobi, the bank positions itself at the heart of East Africa’s financial hub.
Paramount Bank, which began operations in 1993 as a non-banking financial institution before obtaining a commercial license in 1995, currently operates a network of nine branches across Kenya.
The acquisition comes at a time of steady but cautious growth for Paramount Bank. In the nine months ending September 2025, the lender reported a profit after tax of Ksh. 234.8 million, a marginal increase from the previous year. While customer deposits grew by 5% to reach Ksh.12.9 billion, the bank has struggled with deteriorating asset quality.
Gross non-performing loans (NPLs) surged by 48.3% to Ksh. 2.2 billion in late 2025. Financial analysts suggest that cleaning up this loan book and integrating Paramount’s operations into Zenith’s broader risk management framework will be an immediate priority for the new owners.
The timing of the acquisition is critical regarding Kenya’s evolving regulatory landscape. Paramount Bank recently hit a milestone by meeting the Central Bank of Kenya’s (CBK) Ksh. 3 billion core capital requirement ahead of the 2025 deadline, bolstered by a Ksh. 332 million rights issue.
However, the bar is set to rise again. The CBK has mandated that commercial banks must reach a minimum core capital threshold of Ksh. 5 billion by the end of 2026. Zenith Bank is expected to inject fresh capital into its new subsidiary to ensure compliance with these looming requirements.
Zenith Bank enters the Kenyan market backed by a massive balance sheet. For the 2025 financial year, the group reported gross earnings of N4.19 trillion (approx. $2.6 billion).