• Kenya’s competition authority approved Zenith Bank’s takeover of Paramount Bank.
• The deal would give Zenith its first foothold in the Kenyan banking market.
• Paramount Bank ranks among Kenya’s smallest lenders, with a 0.2% market share.

Kenya’s Competition Authority (CAK) announced on Jan. 22 it had approved the acquisition of 100% of Paramount Bank Limited by Zenith Bank, one of Nigeria’s largest banking groups. Once completed, the transaction will mark the entry of a new pan-African banking player into the Kenyan market.

As part of the approval, Zenith Bank committed to retaining all 78 existing employees of Paramount Bank under their current contracts. This job protection guarantee will apply for a minimum period of 12 months from the effective completion of the transaction. The measure is intended to safeguard the public interest and ensure a smooth transition.

Whereas the transaction is unlikely to lead to a substantial prevention or lessening of competition in the banking services market in Kenya, Zenith Bank has been required to retain Paramount's 78 employees for at least 12 months after the transaction is completed. pic.twitter.com/tdXZzw1HA1

— Competition Authority of Kenya (@CAK_Kenya) January 22, 2026

A small lender under regulatory pressure

As of December 2024, Paramount Bank ranked 33rd out of 39 licensed banks in Kenya. Its market share was estimated at about 0.2%, placing it among the country’s smallest lenders. The bank falls into the Tier III category, which is particularly exposed to ongoing regulatory reforms.

A reform adopted in December 2024 requires banks to raise their minimum core capital to 3 billion Kenyan shillings by the end of 2025. The threshold will then increase to 10 billion shillings, or about $77.5 million, by 2029. For many small banks such as Paramount, these requirements represent a structural challenge. They increase the need for recapitalization or strategic consolidation.

Zenith Bank’s regional expansion strategy

For Zenith Bank PLC, which is listed in Lagos and London, the acquisition represents a key step in its continental expansion strategy. The value of the transaction was not disclosed. The Nigerian lender already operates in Nigeria, Ghana, the United Kingdom, China, and the United Arab Emirates.

By acquiring Paramount Bank, Zenith will establish an operational base in East Africa. The group also plans to expand into francophone African markets, including Cameroon and Côte d’Ivoire.

According to the CAK, the transaction will not alter the structure or concentration level of Kenya’s banking sector. Zenith Bank had no prior operations in the country. As a result, Paramount Bank’s market share will remain unchanged after the deal. Other banks will continue to account for more than 99.8% of the market.

Sandrine Gaingne