The Competition Authority of Kenya (CAK) has granted approval for Zenith Bank Plc’s proposed acquisition of 100% of Paramount Bank Limited, clearing a major regulatory milestone for the Nigerian lender as it seeks to enter East Africa’s largest financial market.
The CAK’s approval, issued on Thursday, comes with one key condition: Zenith must retain all 78 employees of Paramount Bank for a minimum of 12 months following the completion of the transaction. While the regulator found no competition concerns associated with the deal, it identified employment protection as a critical public‑interest consideration.
The CAK stated in its decision:
The Authority has approved the proposed acquisition… on condition that the acquirer retains the target’s 78 employees for at least twelve months following completion.
The approval ends months of speculation regarding Zenith’s expansion strategy in Kenya. However, the acquisition still requires further clearance from the Central Bank of Kenya (CBK) and regulatory authorities in Nigeria before it can be finalized.
Regulatory Landscape and Deal Context
The financial terms of the transaction remain undisclosed. For context, Access Holdings paid $109.6 million in 2025 to acquire the National Bank of Kenya (NBK) from KCB Group, offering a benchmark for recent bank acquisitions in the country.
In November 2025, Zenith disclosed that its move into Kenya formed part of a broader continental expansion drive. Acquiring a local bank provides immediate access to an established license, personnel, and customer base, advantages that can take years to develop organically.
Zenith Bank is listed on both the Nigerian Stock Exchange and the London Stock Exchange, with a market capitalization of ₦2.88 trillion (≈$2.03 billion). The bank currently has no operating presence in Kenya.
Paramount Bank’s Position in the Market
Paramount Bank is ranked 33rd out of 39 licensed banks in Kenya as of December 2024, placing it firmly within the Tier III (small bank) category. In addition to its core banking business, Paramount also owns:
- a bancassurance arm, and
- an investment banking subsidiary.
Because Zenith has no existing Kenyan operations, the CAK found that the acquisition would not alter market concentration levels, noting that competitors would continue to control over 99.8% of the market post‑transaction.
The authority defined the relevant market as banking services nationwide, reflecting Paramount’s countrywide operating footprint. It concluded that the deal was “unlikely to lead to a substantial prevention or lessening of competition.”
Why Zenith Is Entering Kenya Now
The acquisition aligns with a wider trend of Nigerian banks expanding beyond their home market amid intensifying domestic competition. Peers, including Access Bank, United Bank for Africa (UBA), and GTBank, already maintain operations in Kenya. Notably, Access Bank completed the acquisition of NBK in 2025.
Meanwhile, Kenyan banks face pressure from new capital adequacy rules introduced under the Business Laws Amendment Act (December 2024). The law significantly raised minimum core capital requirements:
- from KES 1 billion ($7.7m) to KES 3 billion ($23.2m) by December 2025, and
- to KES 10 billion ($77.5m) by 2029.
As of December 2025, 10 of Kenya’s 39 licensed banks had failed to meet the first threshold. Many smaller lenders are now actively seeking acquisitions, new investors, or merger partners, creating prime opportunities for foreign buyers like Zenith.
What Comes Next
With CAK approval secured, attention now turns to:
- Central Bank of Kenya (CBK) approval,
- Nigerian regulatory approvals, and
- deal completion timelines.
If finalized, the acquisition will give Zenith Bank a strategic entry point into East Africa at a time when regulatory-driven consolidation is reshaping the Kenyan banking landscape.
