The Central Bank of Kenya (CBK) has announced the acquisition of 100 percent shareholding in Paramount Bank Limited by Zenith Bank PLC, marking a significant development in Kenya’s banking sector.
In a statement, CBK confirmed that the transaction received regulatory approval on March 9, 2026, under Section 13 (4) of the Banking Act.
Additional approval was granted by the Cabinet Secretary for the National Treasury and Economic Planning on March 16, 2026, in accordance with Section 9 of the Banking Act.
The acquisition will take effect upon the completion of the transaction, in line with the terms agreed upon by the two financial institutions.
Paramount Bank Limited traces its origins to Combined Finance Limited, a non-banking financial institution established in 1993. It transitioned into a commercial bank in 1995, later merging with Universal Bank in 2000 and adopting the name Paramount Universal Bank Ltd. In 2015, the institution reverted to its current name, Paramount Bank Ltd.
The bank operates a subsidiary, Paramount Bancassurance Intermediary Ltd, which is involved in the distribution of insurance products. Its headquarters are located at Sound Plaza in Westlands, Nairobi, with a network of seven branches across the country, four in Nairobi, and one each in Mombasa, Kisumu, and Eldoret.
Zenith Bank PLC, headquartered in Lagos, Nigeria, is among the largest banks in the country and is listed on both the Nigeria Stock Exchange and the London Stock Exchange.
The bank operates an extensive network of more than 450 branches in Nigeria and maintains a presence in several countries across West Africa, as well as in the United Kingdom, France, and the United Arab Emirates.
CBK welcomed the acquisition, noting that it is expected to enhance stability and resilience within Kenya’s banking sector while also promoting competition.