There is growing talk across Africa’s banking space, and the question on everyone’s mind is simple: Is Zenith Bank truly set to buy Kenya’s Paramount Bank? 

The signs suggest that something big is happening, and both banks have already taken steps that point towards a serious deal.

What we know so far shows that this is more than just a rumour. Paramount Bank has just completed a major capital boost, and Zenith Bank, one of Nigeria’s strongest financial institutions is officially seeking regulatory approval in Kenya. 

When you put the pieces together, the possible takeover looks very real.

Paramount Bank Strengthens Its Capital Base

Paramount Bank recently raised fresh funds through a rights issue, increasing its core capital to about $24 million. 

This is a key milestone because the Central Bank of Kenya has been pushing small and mid-sized banks to grow stronger. New rules require commercial banks to have at least Ksh3 billion in capital this year, with much bigger requirements coming by 2029.

By increasing its capital, Paramount Bank has positioned itself to meet these new requirements. 

More importantly, it signals that the bank is preparing for a partnership or acquisition. In today’s banking climate, smaller lenders in Kenya often need bigger partners to survive stricter regulations and stronger competition.

A Long Journey for Paramount Bank

Paramount Bank’s story is one of steady evolution. It began in 1993 as a finance company, and by 1995 it had become a full commercial bank. A merger in 2000 expanded its footprint, leading to the brand we know today. 

With just eight branches, it is a modest but established player in Kenya’s financial system.

But growth has limits, especially when new regulatory standards continue to rise. This is where Zenith Bank steps in.

Zenith Bank Makes Its Move

Zenith Bank, founded by Nigerian banking icon Jim Ovia, has been on an expansion mission this year. After raising more than N350 billion from investors, the bank now has one of the strongest capital bases in Nigeria. 

This financial strength puts Zenith in a good position to expand beyond West Africa.

Earlier this month, Zenith formally applied to acquire Paramount Bank. 

This is not something a bank does casually. Filing for regulatory approval means Zenith is serious and ready to spend time, money, and resources to enter the Kenyan market through a strategic takeover.

If successful, this will mark Zenith Bank’s first major operation in Kenya, an entry into East Africa’s fast-growing financial sector.

Part of a Bigger Regional Strategy

Zenith Bank’s interest in Paramount Bank fits into a broader plan. The bank is not only looking at Kenya; it is also preparing to open a branch in Côte d’Ivoire and later expand into Cameroon. 

By strengthening its presence across West and Central Africa, and now eyeing East Africa, Zenith is positioning itself as a truly pan-African financial player.

Kenya is especially attractive. It is a major financial hub in East Africa, home to strong fintech innovation and a rapidly growing banking sector.

So, Is the Deal Happening?

From all indications, the answer leans strongly toward yes. Paramount Bank has boosted its capital at the right time. Zenith Bank has raised enough funds for expansion.
The regulatory process has officially begun.

While the final approval will depend on regulators in Kenya, the groundwork for a takeover is already in motion.

For now, all eyes are on Nairobi and Lagos. If the acquisition goes through, it could reshape competition in Kenya’s banking industry and mark a new chapter in Zenith Bank’s African expansion.