Nigeria’s Zenith Bank Plc is officially entering the Kenyan banking market after receiving regulatory approval to acquire 100 percent of Paramount Bank Limited according to the Business Daily.
The Competition Authority of Kenya (CAK) approved the transaction on the condition that Zenith Bank retains Paramount Bank’s current staff for at least 12 months after the deal is completed. According to the regulator, the acquisition will not harm competition in the banking sector or raise public interest concerns.
“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 completion,” CAK said in its determination.
Zenith Bank is Nigeria’s second-largest lender by asset base and market capitalisation. The acquisition marks its first entry into Kenya and the wider East African region.
With this move, Zenith becomes the fourth Nigerian bank to establish a presence in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank) and Access Bank, The announcement comes a couple of days after South Africa’s Nedbank moved to acquire 66% of NCBA.
Paramount Bank is a Tier III lender and was ranked 33rd out of 39 banks in Kenya at the end of 2024, according to data from the Central Bank of Kenya (CBK).
The acquisition is expected to strengthen Paramount’s financial position. It will also help it meet Kenya’s tougher capital requirements and give Zenith Bank a ready-made local platform to scale from.
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