Family Bank is one step closer to listing its shares on the Nairobi Securities Exchange (NSE) after its shareholders endorsed the lender’s plan to list its shares on the bourse, a milestone step towards becoming a Tier One bank.
The move approved at an Extraordinary General Meeting (EGM) held in Nairobi will have the bank list its existing shares through a listing by introduction in 2026.
What this means is that the bank will not raise fresh funds but, rather, allow existing shareholders to sell their shares on the NSE freely.
The shift has been considered a watershed move that will unlock investor liquidity and position the mid-tier lender for its future growth stage.
Family Bank Board Chairman Lazarus Muema, addressing journalists after the shareholders’ approval, said the shift came after decades of strategic aggregation aimed at consolidating the institution’s financial pillars and governing structures.
“As a board, we’ve taken time to prepare to build value and to ensure when we list, we list from a position of strength,” Mr. Muema said. “It’s not prestige. It’s about creating long-term value for our shareholders and positioning ourselves for long-term growth.”
He said that before that, capital-raising activities private placements and bond issues had firmied the bank’s balance sheet and modernized its systems to equip it with the strength to take this next step.
The announcement follows a private placement whose results will be announced once regulatory bodies’ reporting requirements have been met.
Family Bank Chief Executive Officer Nancy Njau welcomed the approval by the shareholders, referring to it as a vote of great confidence in the direction and performance of the bank.
“Our financial position today is the result of years of disciplined growth and prudent balance sheet management,” Ms. Njau said. “We’ve delivered consistent double-digit growth in profitability, maintained strong capital ratios, and steadily improved asset quality all while deepening our focus on SMEs and sustainable lending.”
She said that the listing on NSE would not only enhance transparency and governance but also strengthen the bank’s reputation among investors and customers.
“It sets us up for our next phase of growth, and it shows our long-term commitment to creating shareholder value,” she added.
Having received the okay from shareholders, Family Bank will now move to secure the necessary approvals from the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) before finalizing the listing process.
Family Bank is one of Kenya’s fastest-growing mid-tier banks with a strong focus on SME and retail banking. It operates 96 branches in 32 counties and has in excess of 1.2 million customers through its network of 6,000 agents and 75,000 merchants.
At December 31, 2024, the bank had total assets of KSh168.5 billion and a deposit base of KSh126.4 billion.
Family Bank has, with time, become renowned for customer care and innovation. It was at the forefront of online services such as paperless banking, mobile banking, and PesaPap, and it pioneered being the first bank in Africa to roll out mVisa.
In 2024, the bank took home the Excellence in Customer Responsiveness Award and was third-best overall bank in Kenya.
It also won the Banking on Women Award and the CX Social Impact & Sustainability Service Excellence Award.
Some of its past awards include the Best SME Bank in Kenya (2017) and the Corporate Bond Campaign Award (2021), marking its place as one of the country’s most dynamic and socially conscious lenders.
