Family Bank Raises Sh8.004 Billion in Private Share Sale

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Family Bank has completed its private placement of ordinary shares, raising Sh8.004 billion against a Sh6.090 billion target. The Family Bank private placement recorded an oversubscription of 131%, driven by strong interest from both institutional and individual investors.

The proceeds will be directed toward digitization, lending expansion, and growth across Kenyan and regional markets.

The offer attracted participation from fund managers, pension funds, insurance companies, corporate institutions, and retail investors. According to the lender, the oversubscription of the Family Bank ordinary shares points to wide market engagement across different investor groups.

Family Bank Chairman Lazarus Muema said the outcome shows market belief in the bank’s performance and its engagement with SMEs, agriculture, and underserved groups. He added that investors showed support for the bank’s shift toward digital services and its long-term plans in retail and business banking.

The bank plans to channel the raised capital into technology upgrades, increased lending capacity, and regional expansion. Areas expected to receive priority include MSMEs, green financing, and women- and youth-led enterprises.

Family Bank CEO Nancy Njau said the new equity will support the bank’s loan growth and strengthen its capital ratios. She noted that the raise comes at a time when the lender is preparing for new opportunities both in Kenya and within neighbouring markets.

Standard Investment Bank acted as Lead Transaction Advisor and placement agent, working alongside Sterling Capital.

The capital raise comes a few days after Family Bank began steps toward a Nairobi Securities Exchange listing by introduction. The lender has hired transaction advisers and opened talks with regulators.

It expects approvals from the Central Bank of Kenya and the Capital Markets Authority before the end of the year, with plans to list in the first half of next year.

The listing will not involve selling new shares but will provide a trading platform for existing shareholders, including founder Titus Muya, his family, and Kenya Tea Development Agency, which holds 16.2%.

Family Bank posted a net profit of Sh3.5 billion in the nine months to September, a 56% rise compared to the previous period.

The increase was supported by income from Treasury bills and bonds, which rose by 43.1% to Sh5.5 billion as the bank channelled more deposits into government securities during a period of slow private-sector credit uptake.

Customer deposits grew by 15.1% to Sh147.3 billion, while the loan book expanded by 10.1% to Sh103.7 billion. Interest income from loans increased by 12.1%, supported by higher lending volumes and more activity in digital channels. The bank also recorded Sh1.2 billion in trading gains from government paper.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.