The Central Bank of Kenya (CBK) has announced the acquisition of 100% of the shareholding of Paramount Bank Limited (PBL) by Zenith Bank PLC (Zenith). The acquisition follows the approval by CBK on March 9th, 2026, under Section 13 (4) of the Banking Act, and approval by the Cabinet Secretary, The National Treasury and Economic Planning on March 16, 2026, pursuant to Section 9 of the Banking Act.
“The acquisition shall take effect upon completion of the transaction in accordance with the terms of the Agreement between the two parties,” Central Bank of Kenya said in a statement.
Paramount Bank Limited evolved from Combined Finance Limited, a non-banking financial institution established in 1993. It commenced operations as a commercial bank in 1995.
It later merged with Universal Bank in the year 2000, and subsequently changed its name to Paramount Universal Bank Ltd. In 2015, the bank reverted to its previous name, Paramount Bank Ltd. PBL has one subsidiary, Paramount Bancassurance Intermediary Ltd, which distributes insurance products.
Paramount Bank is headquartered at Sound Plaza, Westlands, Nairobi, with seven (7) branches, four located in Nairobi and one each in Mombasa, Kisumu and Eldoret.
Zenith Bank PLC, on the other hand, is headquartered in Lagos, Nigeria, and is listed on both the Nigeria Stock Exchange and the London Stock Exchange. Zenith is among the largest banks in Nigeria, with over 450 branches across the country.
The bank also has operations in various countries across West Africa, United Kingdom and a branch each in France and United Arab Emirates. CBK welcomes this transaction as it will ensure continued stability, enhance the resilience of the Kenyan banking sector and promote competition.
Zenith Bank, Nigeria’s second largest lender, is expected to use its deep pockets to inject more competition in Kenya’s banking space, trigger heightened regional competition and create more possibilities for business and individual customers.
Kenya region has attracted interests from South Africa and Western Africa banking giants to challenge the long held dominance of European lenders. Zenith Bank joins a growing list of West African banks operating in Kenya’s banking space including United Bank of Africa(UBA), Guaranty Trust Bank (GT Bank), Ecobank, and Access Bank which acquired National Bank of Kenya and Transnational Bank Plc.
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