Family Bank has secured Sh8 billion in new capital after its private share sale drew more than double the expected investor interest, highlighting growing confidence in the mid-sized lender as it prepares to join the Nairobi Securities Exchange in 2026.
The bank had aimed to raise Sh6.09 billion, but the offer was oversubscribed by 131 per cent, with most of the funds coming from pension funds, insurance firms, fund managers and high-net-worth individuals. The strong demand means new investors now hold a bigger stake in the bank, while the shareholding of founder Titus Muya’s family has reduced.
Family Bank says the fresh funds will mainly support small and medium enterprises, which form the core of its customer base. The capital will also help to fund women- and youth-owned businesses, finance green projects, and support the bank’s ongoing digital upgrade. In addition, the lender plans to use part of the money to support its expansion into Uganda and the Democratic Republic of Congo.
Some long-time shareholders, including the Muya family and Kenya Tea Development Agency (KTDA) Holdings, which owns 16.2 per cent, chose not to take part in the transaction. This opened the door for new investors to come in ahead of the bank’s planned NSE listing by introduction, which will allow its shares to trade publicly without raising new money.
The capital raising comes at a time when Family Bank is enjoying improved financial performance. The lender recorded a 56 per cent rise in nine-month net profit to Sh3.5 billion, largely driven by higher earnings from government securities.
With stronger capital and growing profits, the bank is now focused on strengthening its market position as it moves closer to becoming a publicly traded lender next year.
