Zenith Bank PLC has officially completed the acquisition of Paramount Bank Kenya Limited following the receipt of regulatory approvals from relevant authorities in both Kenya and Nigeria.
The transaction, which saw Zenith acquire the entire issued share capital of Paramount Bank marks a key milestone in the bank’s long-term strategic growth agenda and expansion into the East African market. Zenith Bank becomes the fourth Nigerian Bank to have a footprint in Kenya, joining Access Bank, United Bank for Africa (UBA), and Guaranty Trust Bank.
In a statement, the Nigerian-based lender noted that the acquisition further strengthens its position as a leading financial institution in Sub-Saharan Africa and affirms its strategy of following its customers’ businesses across markets.
Paramount Bank is a Tier III lender established in 1993 as a non-banking financial institution under the name Combined Finance Ltd. It obtained a commercial banking license in 1995 and began offering full banking services as Paramount Bank Ltd. In 2000, the bank merged with Universal Bank Ltd to form Paramount Universal Bank, but later reverted to the name Paramount Bank Ltd, maintaining its focus on delivering quality, customer-centric banking services. The lender currently operates nine branches in Kenya.
In the nine months ended September 2025, Paramount Bank posted steady financial performance, with profit after tax inching up 0.7% to KES 234.8 million from KES 233.2 million in the same period last year. Net interest income eased by 5% to KES 474.9 million, while non-funded income surged 93.1% to KES 280 million.
Customer deposits increased by 5% to KES 12.9 billion, while loans and advances grew by 4.4% to KES 8.6 billion, maintaining the loan to deposit ratio at 66.6%, unchanged from Q3 2024. The lenders asset quality deteriorated, evidenced with a 48.3% surge in Gross non-performing loans to KES 2.2 billion.
During the period, Paramount Bank met and exceeded the Central Bank of Kenya’s (CBK) KES 3 billion core capital requirement ahead of the 2025 deadline, following a successful rights issue that raised KES 332 million from existing shareholders. The lender’s core capital stood at KES 3.12 billion.
Zenith Bank Likely to Inject Capital as Regulatory Bar Rises
Looking ahead, Zenith Bank Plc is likely to be required to inject additional capital into Paramount Bank to meet evolving regulatory requirements. The CBK has set a minimum core capital threshold of KES 5 billion for commercial banks by the end of 2026, a move aimed at strengthening the resilience and stability of the banking sector. This implies that Zenith Bank may need to recapitalize its Kenyan subsidiary to ensure compliance.
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