Zenith Bank Plc has received approval from Kenya’s Competition Authority (CAK) to acquire 100 per cent of Paramount Bank Limited, a mid-sized bank in Kenya.
The approval clears an important regulatory step and moves Zenith Bank closer to entering Kenya, East Africa’s largest financial market. The Competition Authority announced the decision in a statement on Thursday. However, the deal still needs final approval from the Central Bank of Kenya and Nigerian regulators before it can be completed.
According to the CAK, the approval comes with one key condition: Zenith Bank must retain all 78 staff members of Paramount Bank for at least 12 months after the takeover is completed.
The regulator explained that the acquisition does not pose any threat to competition in Kenya’s banking sector. It said employment was the main public interest issue linked to the deal.
Paramount Bank is a Tier III bank and was ranked 33rd out of 39 banks in Kenya as of December 2024. The bank also operates a bancassurance business and an investment banking subsidiary.
The Competition Authority noted that Zenith Bank currently has no banking operations in Kenya, meaning the takeover would not change the structure of the banking market. After the acquisition, Paramount Bank’s market share will remain the same, while other banks will continue to control more than 99.8 per cent of the market.
Zenith Bank’s move is part of its wider plan to expand beyond West Africa. The bank, which is listed on both the Nigerian and London stock exchanges, is following the path of other Nigerian banks such as Access Bank, UBA, and GTBank, which already operate in Kenya.
In 2025, Access Holdings bought the National Bank of Kenya for $109.6 million, highlighting the growing interest of Nigerian banks in East Africa.
Zenith’s expansion plans are being supported by a N614.65 billion capital raise completed last year, which increased the bank’s capital base by 160 per cent. Speaking in October, Zenith Bank’s Group Managing Director and CEO, Adaora Umeoji, said the funds were already being used to expand the bank’s global presence, starting with a branch in Paris and plans to move into Côte d’Ivoire and other Francophone markets.
In November 2025, Zenith Bank confirmed it had begun discussions with regulators as part of its plan to expand into East Africa. At the time, the bank said it was exploring opportunities in the region, although no deal had been finalised.
