Nigerian Bank to Acquire Kenya’s Paramount Bank Over Core Capital Pressure

Nigeria’s Zenith Bank is pursuing the acquisition of Paramount Bank, a mid-sized Kenyan commercial bank.

The bank has reportedly secured regulatory approval in principle and aims to complete the deal by January 2026.

Nigerian banks are increasingly looking to expand their footprints in East Africa, particularly Kenya, with  Zenith boasting assets of around Ksh.2.68 trillion, larger than some of Kenya’s biggest banks such as KCB Group and Equity Bank.

As of the end of 2024, it reported a net profit of Ksh.339.9 million and had total assets worth Ksh.15.9 billion, with a loan book of Ksh.9.4 billion.

In addition, the bank is under regulatory pressure to build up its capital base.

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The acquisition stems from a move by the Central Bank of Kenya (CBK) that recently raised the minimum core capital requirement, forcing smaller banks to either recapitalize, merge, or sell.

Paramount itself has said it is preparing for these changes, planning to increase its core capital through retained earnings and other measures.

Zenith has been aggressively ramping up its capital to support continental expansion. Earlier in 2025, it raised approximately Ksh.29.5 billion through a rights issue and a public offer that was significantly oversubscribed.

According to Business Daily, analysts believe this capital could fuel its acquisition ambitions in Kenya and other African markets.

Implications for the Kenyan Banking Sector

If the acquisition goes through, Zenith will become the fourth Nigerian bank operating in Kenya, following UBA, Guaranty Trust Bank, and Access Bank.

Regulators have also opened the door to more competition, considering CBK recently lifted a moratorium on new bank licenses, making Kenya’s financial space more welcoming to ambitious, well-capitalized entrants.