Paramount Bank has officially surpassed the Central Bank of Kenya’s (CBK) minimum core capital requirement of Sh3 billion, after a successful rights issue that raised Sh332 million from existing shareholders.
The lender’s core capital stood at Sh3.118 billion as of September 30, 2025.
The bank says it is now better positioned to accelerate its expansion strategy, support larger lending portfolios, strengthen digital transformation initiatives, and enhance customer-centric products across retail, SME, and corporate segments.
Paramount Bank, Chief Executive Officer, Mr. Ayaz Merali, said:
“This milestone reflects the confidence our shareholders have in Paramount Bank’s strategic vision and our ability to deliver sustainable value whilst meeting all statutory requirements. The strengthened capital position enables us to scale up lending, enhance operational resilience, and continue providing innovative financial solutions to our customers,”
The Business Laws (Amendment) Act, 2024, which was enacted last year, requires banks to raise their minimum core capital from Sh1 billion to Sh10 billion over the next five years.
The capital build-up requirement begins with Sh3 billion by end of December this year, rising to Sh5 billion in 2026, Sh6 billion in 2027, Sh8 billion in 2028, and ultimately Sh10 billion by end of 2029.
Earlier this year, the CBK asked 24 banks, with core capital below the Sh10 billion target, to submit plans outlining how they intend to raise funds to meet the new minimum core capital requirements.
Paramount bank has recently been the subject of speculation over a potential acquisition by Nigeria’s Zenith Bank.
Zenith Bank, in a formal statement issued on November 18, 2025, denied the reports stating that no transaction is currently in progress. The lender, however, said it is on the look out for expansion opportunities in East Africa and any potential deal will be communicated in line with regulatory requirements.
Zenith Bank said in a communication to investors:
“The Bank wishes to formally notify the Nigerian Exchange Limited (NGX), our esteemed shareholders, investors, and the general public that the information currently circulating in the public domain was not released or authorized by the Bank.”
“However, as part of our long-term strategic growth agenda, the Bank is currently exploring various regional expansion opportunities-including within East Africa”
“Should any transaction requiring regulatory disclosure or shareholder notification arise in the future, the Bank will comply with all applicable provisions of the NGX Rulebook, the Securities and Exchange Commission (SEC) regulations, and other statutory requirements for timely and transparent disclosure.”
Paramount Bank reported a profit after tax of Sh158.2 million for the half year ended June 30, 2025.
