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Kenya’s Paramount Bank has strengthened its capital to $24 million, as Lagos-based financial services group Zenith Bank Plc, founded by Nigerian banker Jim Ovia, revealed plans to acquire the Nairobi-based lender. The move positions Paramount Bank to meet regulatory requirements and prepare for a potential takeover by one of West Africa’s top banks.
Paramount Bank’s core capital hits $24.04 million
Regulatory filings show Paramount Bank raised Ksh332 million ($2.55 million) through a rights issue, pushing its core capital to Ksh3.118 billion ($24.04 million) by the end of September. This compares with Ksh2.75 billion ($21.2 million) at the close of June 2025.
The capital boost comes amid rising minimum thresholds set by Kenya’s central bank, which requires commercial banks to hold at least Ksh3 billion ($23.18 million) in capital this year, increasing to Ksh10 billion ($77.28 million) by 2029. Smaller banks are seeking partners to remain competitive, putting Paramount Bank in the spotlight as a potential acquisition target.
From finance firm to commercial bank
Paramount Bank traces its roots to 1993 when it was founded as Combined Finance Limited, a non-banking financial institution. Two years later, it expanded into a full-service commercial bank. A 2000 merger with Universal Bank Ltd allowed it to broaden its reach, leading to a rebranding as Paramount Universal Bank Limited. By 2005, it became Paramount Bank Ltd and today operates eight branches, including its headquarters in Nairobi.
Zenith Bank, established by Nigerian financier Jim Ovia, is pursuing its first significant entry into the Kenyan market. The Lagos-based lender filed for regulatory approval earlier this month to acquire Paramount Bank in a move aimed at serving the entire spectrum of the market.
Its interest in Paramount Bank follows its substantial capital raise of N350.4 billion ($229.74 million) via a rights issue and public offering, lifting its share capital to N614.65 billion ($402.69 million), above the Central Bank of Nigeria’s N500 billion ($327.36 million) threshold for banks seeking international operations.
Regional growth push for Zenith Bank
Zenith Bank has also announced plans to open branches in Côte d’Ivoire before year-end, with Cameroon to follow. Olukayode Akinbinu, Zenith’s head of strategy, said the Abidjan branch will allow the bank to serve a West African economy averaging 6.7 percent annual growth over the past five years. The move will also provide Zenith access to the CEMAC regional bloc, broadening its reach across West and Central Africa.
