Zenith Bank, Nigeria’s second-largest bank by assets and market value, has received regulatory approval to acquire Paramount Bank Limited, marking its first entry into Kenya’s financial market, the Competition Authority of Kenya announced on Thursday.
The approval comes with conditions to protect employment, requiring Zenith to retain all of Paramount Bank’s staff for at least 12 months after the deal is completed. Financial terms of the acquisition were not disclosed.
The transaction underwent full review under Kenya’s Competition Act, as it surpassed the KES 1bn threshold for regulatory scrutiny. The authority noted that the deal “would not significantly lessen competition,” since Zenith has no existing operations in Kenya and Paramount is a small player in the banking sector.
“The Competition Authority of Kenya has approved the proposed acquisition of 100 per cent shareholding of Paramount Bank Limited by Zenith Bank PLC, subject to conditions aimed at safeguarding employment,” the regulator said in a statement posted on X (formerly Twitter).
Paramount Bank, the target company, also controls Paramount Bancassurance Intermediary Limited, which provides insurance intermediary services, and PB Capital Limited, its investment banking subsidiary.
The acquisition aims to strengthen Paramount Bank’s financial position, ensure long-term compliance with Kenya’s enhanced core capital requirements, and reduce reliance on ad hoc shareholder capital injections.
In assessing the deal, the regulator defined the relevant market as banking services and the geographic scope as national. Paramount Bank, a tier III lender ranked 33rd out of 39 banks as of December 2024, operates across Kenya. The sector is highly competitive and increasingly driven by digital banking, mobile platforms, and agency banking rather than physical branches.
Zenith Bank, incorporated in Kenya but owned by a parent company listed on the Nigerian and London stock exchanges, operates in Nigeria, Ghana, Sierra Leone, Gambia, the UK, France, UAE, and China, offering corporate and retail banking, wealth management, trade finance, treasury, and investment banking services.
