Zenith Bank Cleared to Acquire Kenya’s Paramount Bank

Zenith Bank Plc has received approval from Kenya’s Competition Authority for its proposed acquisition of 100 per cent of Paramount Bank Limited, marking a significant step in its expansion into East Africa’s largest financial market.

The approval clears a major regulatory hurdle, although the transaction remains subject to additional clearances from Kenya’s central bank and Nigerian regulatory authorities before completion.

The competition regulator approved the deal on the condition that Zenith Bank retains all existing employees of Paramount Bank for a minimum period following the transaction. Employment preservation was identified as the primary public interest consideration tied to the acquisition.

Paramount Bank operates as a Tier III lender within Kenya’s banking system, offering commercial banking services alongside bancassurance and investment banking subsidiaries.

Regulators concluded that the acquisition poses no competition concerns, as Zenith Bank currently has no operations in Kenya. Post-acquisition, the structure of the banking market is expected to remain unchanged, with dominant players continuing to control the overwhelming majority of market share.

The acquisition aligns with Zenith Bank’s broader strategy of expanding beyond West Africa and following its corporate clients into high-growth African markets. Other Nigerian lenders have already established strong footprints in Kenya, underscoring the market’s strategic importance.

Zenith’s expansion drive is supported by a substantial hybrid capital raise completed recently, which significantly strengthened its capital base. The bank has since accelerated its international growth plans, including new branches and market entries across Europe and Francophone Africa.

Management has indicated that these moves are designed to position the bank as a truly pan-African and international financial institution.