Family Bank has raised just over Ksh.8 billion through a private share placement launched in November 2024, significantly exceeding its target of Ksh.6.09 billion after the offer closed at 131 per cent subscription.
The capital raise attracted strong interest from pension funds, insurance companies, fund managers, corporates and individual investors.
The bank said the Ksh.8.004 billion raised will be used to accelerate its digital transformation, expand its lending capacity and support business growth initiatives in Kenya and across the region.
Chief Executive Officer Nancy Njau said the overwhelming response demonstrated strong investor confidence in the bank’s strategy, financial performance and commitment to inclusive banking.
“We are deeply grateful to all investors who participated in this landmark capital raise. The additional equity significantly bolsters our capital ratios and will accelerate lending to priority sectors such as MSMEs, green financing, and women- and youth-led enterprises.
This successful raise positions Family Bank strongly for sustained growth and enhanced shareholder value,” Ms. Njau said.
Chairman Lazarus Muema said the successful raise was a clear vote of confidence in Family Bank’s resilient business model, consistent profitability and focus on the real economy, particularly small businesses, agriculture and underserved communities.
The private placement was executed with Standard Investment Bank (SIB) as lead transaction adviser and placement agent, working alongside Sterling Capital.
The resounding results came a week after the lender posted strong financial results for the nine months ended September 2025.
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The profitability was driven by a recovering macroeconomic environment and strong customer demand, with its balance sheet rising to Ksh.202.5 billion by September 2025, supported by a Ksh.19 billion jump in customer deposits.
According to Chief Finance Officer Paul Ngarangari, Shareholders’ funds increased to Ksh.98.2 billion, reflecting improved profitability and stronger capitalisation.
Loans advanced during the period grew by 10%, rising from Ksh.92 billion to Ksh.103 billion, with the bank disbursing an average of Ksh.1.8 billion per week to households and businesses across the country.
The institution is now entering its final phase of preparations to list on the Nairobi Securities Exchnage (NSE), and is expected to unlock new capital and elevate the bank’s homegrown legacy.
He outlined a proposed timeline that began on 19 August 2025, when the board approved strong financials showing 24% profit-before-tax growth. On August 20, the board recommended the bank’s listing, followed by a shareholder meeting on August 27, which endorsed the resolution.
The bank expects to complete a comprehensive valuation in March 2026, ahead of regulatory approvals from the CBK and Capital Markets Authority (CMA).
Trading at the NSE is projected to begin by June 2026.
