Zenith Bank finalises Paramount Bank Kenya takeover, deepens East Africa expansion

Zenith Bank Plc has completed the acquisition of Paramount Bank Kenya Limited, marking a significant milestone in the Nigerian lender’s strategic push into East Africa.

The development was confirmed in a corporate statement issued Tuesday and signed by the bank’s Company Secretary, Michael Osilama Otu.

While the financial details of the transaction were not disclosed, Zenith announced that it had acquired 100 per cent of Paramount Bank’s issued share capital after securing all required regulatory approvals in both Nigeria and Kenya.

“Further to our publication on November 18, 2025, Zenith Bank PLC is pleased to announce the completion of its acquisition of the entire issued share capital of Paramount Bank Kenya Limited following the receipt of all requisite regulatory approvals in Kenya and Nigeria,” the statement read.

The bank described the acquisition as “a significant step toward our long-term strategic growth agenda and a strong inroad into the East African markets.”

With the deal concluded, Zenith becomes the fourth Nigerian lender to establish operations in Kenya, joining United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank.

Kenya, widely regarded as East Africa’s largest and most sophisticated financial market, has increasingly attracted Nigerian banks seeking geographic diversification and regional growth opportunities.

The acquisition received clearance from the Competition Authority of Kenya (CAK) in January 2026, removing a key regulatory hurdle. The approval was granted on the condition that Zenith retains all 78 employees of Paramount Bank for at least 12 months following completion—a requirement the bank is expected to have fulfilled.

In its review, the CAK stated that the transaction posed no threat to market competition, noting that Zenith previously had no operations in Kenya. After the merger, Paramount’s market share remains marginal, with rival banks collectively controlling more than 99.8 per cent of the sector.

Industry analysts say the acquisition aligns with the bank’s ambition to follow its corporate clients into new growth markets across Africa and strengthen its position as a leading Sub-Saharan financial institution.

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“This move provides Zenith with an immediate banking licence and operational footprint in Kenya, rather than starting from scratch. It significantly shortens the market entry timeline,” said Nairobi-based banking analyst Peter Mwangi.

The deal also follows similar expansion moves by Nigerian competitors. In 2025, Access Holdings acquired the National Bank of Kenya from KCB Bank Group for $109.6 million, underscoring the growing appetite of Nigerian lenders for East African assets.

Zenith’s expansion efforts are supported by a N614.65 billion hybrid capital raise completed last year, which increased its capital base by 160 per cent and enhanced its capacity to fund acquisitions and cross-border growth.

Market observers note that the Kenyan entry provides Zenith with access to a dynamic economy known for digital banking innovation and strong regional trade linkages within the East African Community (EAC).