Zenith Bank Plc has secured regulatory approval from the Competition Authority of Kenya (CAK) to acquire 100 per cent of Paramount Bank Limited, marking a major step in the Nigerian lender’s expansion into East Africa.
In a statement issued on Thursday, the Kenyan competition regulator said the proposed transaction is unlikely to substantially lessen competition in the country’s banking industry. The authority noted that Zenith Bank does not currently operate in Kenya, while Paramount Bank is a Tier III lender with a relatively small footprint, accounting for about 0.2 per cent market share.
CAK added that the acquisition would instead strengthen Paramount Bank’s financial standing and support its ability to meet enhanced core capital requirements over the long term. It also stated that any potential public interest concerns, particularly around employment, could be addressed through agreed safeguards.
As part of the approval conditions, Zenith Bank is required to retain Paramount’s 78 employees for at least 12 months following the completion of the transaction.
Paramount Bank had met the Central Bank of Kenya’s KSh3.0 billion minimum core capital requirement in November last year, posting KSh3.118 billion after raising fresh funds from shareholders, according to Nairobi-based research firm Mwango Capital.
The deal underscores a broader trend among African lenders seeking growth beyond increasingly competitive domestic markets. Analysts say banks in East Africa’s largest economy are exploring new opportunities as credit growth slows, regulatory costs rise and margins come under pressure at home.
While some international banks have scaled back their African operations in recent years, Zenith’s move signals renewed appetite for selective regional expansion, particularly in markets where economic growth and financial inclusion prospects remain strong.
The bank has also set its sights on other frontier markets. Recently, Zenith disclosed plans to enter Ethiopia, Africa’s second most populous nation, as part of a strategy to grow foreign operations and generate as much as half of its profits outside Nigeria in the medium term.
Historically, Nigeria accounted for as much as 90 per cent of the group’s earnings, but that dominance is gradually declining. Industry data indicate that contributions from foreign subsidiaries rose to 27 per cent of profits in the first nine months of 2025, compared with 14 per cent in 2024.
Nigeria’s ongoing banking recapitalisation exercise is further encouraging large lenders to deploy fresh capital beyond their home base. In January 2025, Zenith Bank, which holds an international banking licence, raised N350.4 billion, increasing its paid-up capital to N614.6 billion.
With stronger capital buffers and stabilising domestic earnings after a period of windfall gains, banks are increasingly reassessing how best to channel new funds into higher-growth markets.
Zenith Bank is listed on both the Nigerian Exchange and the London Stock Exchange, with operations spanning corporate, commercial, retail and investment banking. Its international footprint already covers the United Kingdom, Ghana, Sierra Leone, The Gambia, the United Arab Emirates and China.
