Paramount Bank rights issue nets Sh332m, beating Sh3b CBK deadline

Paramount Bank has raised Sh332 million from existing shareholders in the rights issue, surpassing the Central Bank of Kenya’s (CBK) new core capital requirement ahead of the December 2025 deadline.

The bank joins a small group of lenders that have met the revised regulatory threshold meant to strengthen Kenya’s banking sector.

The bank’s core capital now stands at Sh3.118 billion, boosted by a recent rights issue. In a statement, the lender said the capital increase has been reported to the regulator, confirming compliance with the minimum Sh3 billion requirement set under CBK’s new capital framework for commercial banks.

CBK’s revised rules tripled the minimum core capital from Sh1 billion to Sh3 billion, a move expected to drive consolidation, enhance risk buffers, and boost the sector’s ability to support lending in a volatile economic environment.

With several small and mid-tier banks still racing to meet the deadline, the compliance puts it ahead of potential market pressures, including mergers, acquisitions, or forced restructuring.

The lender says the newly strengthened capital base will increase its lending capacity across retail, SME, and corporate segments, while accelerating digital transformation and risk management investments.

“This milestone reflects shareholder confidence in our strategy and strengthens our ability to deliver resilient growth while meeting statutory requirements,” said the leader’s Chief Executive Officer Ayaz Merali.

He added that the bank is now better positioned to scale lending and introduce more customer-focused digital products.

The bank’s strategic plan focuses on expanding digital payment solutions, growing SME and trade finance portfolios, enhancing compliance systems, and supporting sustainable development initiatives.