The Central Bank of Kenya (CBK) has approved the acquisition of 100 percent shareholding of Paramount Bank Limited by Zenith Bank PLC, marking a significant development in Kenya’s banking sector.
In a press release dated April 9, 2026, CBK confirmed that the transaction received regulatory approval on March 9, 2026, under Section 13 (4) of the Banking Act.
The deal was also cleared by the Cabinet Secretary for the National Treasury and Economic Planning on March 16, 2026, in accordance with Section 9 of the same Act.
“The Central Bank of Kenya announces the acquisition of 100 percent of the shareholding of Paramount Bank Limited by Zenith Bank PLC,” the regulator said in the statement.
CBK added that the acquisition will take effect upon completion of the transaction in line with the agreement between the two parties.
The move signals Zenith Bank’s continued expansion into East Africa, strengthening its footprint beyond its Nigerian base.
Headquartered in Lagos, Zenith Bank is one of Africa’s largest financial institutions, with over 450 branches across Nigeria and a presence in several international markets, including the United Kingdom and the United Arab Emirates.
CBK welcomed the acquisition, noting that it is expected to bolster the stability and competitiveness of Kenya’s banking industry.
“CBK welcomes this transaction as it will ensure continued stability, enhance the resilience of the Kenyan banking sector and promote competition,” the regulator said.
Paramount Bank, a mid-tier lender headquartered in Nairobi, has undergone several transformations since its inception.
The bank traces its origins to Combined Finance Limited, a non-banking financial institution established in 1993. It later transitioned into a commercial bank in 1995 after merging with Universal Bank, adopting the name Paramount Universal Bank Ltd.
In 2015, the institution reverted to its current name, Paramount Bank Limited. Over the years, it has diversified its offerings, including operating Paramount Bancassurance Intermediary Ltd, which distributes insurance products.
The bank maintains a network of seven branches—four in Nairobi and one each in Mombasa, Kisumu, and Eldoret.
While the financial details of the transaction were not disclosed, stakeholders anticipate that the deal will position Paramount Bank for accelerated growth under Zenith’s broader pan-African strategy.
The acquisition also underscores Kenya’s attractiveness as a financial hub in the region, with regulators maintaining a framework that supports both local and international investment.
CBK reiterated that all regulatory processes had been followed, emphasizing its role in safeguarding the stability of the financial system.
“The acquisition shall take effect upon completion of the transaction in accordance with the terms of the agreement between the two parties,” the statement noted.