Paramount Bank has crossed a significant regulatory threshold after officially surpassing the Central Bank of Kenya’s minimum core capital requirement of 3 billion shillings. The milestone, achieved ahead of the December 2025 compliance deadline, marks a major step in the bank’s expansion and stability agenda at a time when the financial sector is undergoing rapid consolidation and tightening oversight.
The bank raised 332 million shillings through a rights issue subscribed by existing shareholders. The fresh capital pushed Paramount Bank’s core capital to 3.118 billion shillings as of September 2025. The successful raise and subsequent reporting to the regulator provide full compliance with CBK’s directive that all commercial banks strengthen their capital buffers to support lending capacity, risk management and long term resilience.
Management described the capital milestone as a vote of confidence from shareholders and a strong signal of the bank’s financial health. Chief Executive Officer Ayaz Merali said the capital boost provides both stability and a runway for accelerated growth across key customer segments.
Mr Merali said that the increased capital base will allow the bank to expand lending, deepen digital transformation programmes, and enhance innovation in retail, SME and corporate banking. He noted that the injection positions Paramount Bank to compete more effectively in an operating environment defined by rising customer expectations, rapid digitisation and strengthened regulatory standards.
Analysts say meeting the capital requirement early is strategically important for mid tier banks, which face increasing pressure to diversify revenue streams, manage risk exposures and maintain compliance with evolving regulations. Larger capital buffers not only enhance shock absorption capacity but also improve the ability to attract institutional clients and fund bigger transactions.
The bank’s strengthened capital position comes at a time when the financial sector is navigating mixed macroeconomic conditions that include tighter liquidity, higher credit risk and a cautious lending stance across the market. Paramount Bank’s move to reinforce its balance sheet improves its ability to support customers during this period and scale lending to priority economic sectors.
The successful rights issue forms part of a broader long term plan that aims to transform the bank into a more digitally driven and customer focused institution. Key priorities in the programme include expanding digital banking and payment solutions, strengthening trade finance offerings for SMEs, and modernising risk and compliance frameworks to meet global standards.
The bank also plans to invest in sustainable and inclusive growth initiatives, reflecting a wider shift in the financial sector towards responsible banking that supports environmental stewardship, financial inclusion and ethical lending practices. Paramount Bank said it aims to align its services with Kenya’s development priorities and support individuals, businesses and communities through risk aligned lending and strategic partnerships.
Sector observers note that as CBK continues to raise the bar on governance and capital adequacy, banks that meet requirements early gain an advantage in planning, competitiveness and operational flexibility. Paramount Bank’s achievement provides a foundation for future expansion and offers confidence to investors, customers and regulators.
The bank said it will continue strengthening its operations, improving service delivery and pursuing growth opportunities that leverage its enhanced capital base. With compliance achieved ahead of schedule, management believes the focus can now shift fully to strategic execution and value creation for customers and shareholders.
