Zenith Bank PLC has secured approval from the Competition Authority of Kenya (CAK) for the proposed acquisition of a 100% shareholding in Kenyan Tier III lender Paramount Bank Limited.
The Authority greenlighted the Nigerian-based lender, citing that the acquisition neither prevents competition in Kenya’s banking industry nor raises negative public interest concerns.
The transaction, which is subject to conditions aimed at safeguarding employment, requires Zenith Bank to retain paramount’s 78 employees for 12 months after completion. The rationale for the acquisition includes strengthening Paramount’s financial position, guaranteeing long-term compliance with revised core capital requirements, and lowering reliance on ad-hoc shareholder capital support.
In September 2025, Paramount Bank met and exceeded the Central Bank of Kenya’s (CBK) KES 3 billion core capital requirement by the 2025 year-end in line with the Business Laws (Amendment) Act, 2024, which mandates commercial banks to progressively increase minimum core capital to support growth and enhance resilience amid rising risks. The lender’s core capital stood at KES 3.12 billion, up 13.5% from KES 2.75 billion in June 2025, following a successful rights issue that raised KES 332 million from existing shareholders.
Paramount Bank Q3 2025 Performance
In the nine months ended September 30, 2025, Paramount Bank recorded 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 declined by 5% to KES 474.9 million, while non-funded income surged 93.1% to KES 280 million, with operating expenses climbing 31% to KES 548.8 million.
Customer deposits grew by 5% to KES 12.9 billion, while loans and advances edged higher by 4.4% to KES 8.6 billion, maintaining the loan to deposit ratio at 66.6%, unchanged from Q3 2024. The lender’s asset quality deteriorated, evidenced by a 48.3% surge in gross non-performing loans to KES 2.2 billion.
Zenith Bank’s acquisition of Paramount Bank marks a key milestone in the lender’s expansion strategy in East Africa.
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