KEY POINTS
- Family Bank private placement attracts strong institutional interest.
- Family Bank private placement boosts capital buffers.
- Family Bank private placement supports regional expansion.
Family Bank Limited has secured KSh8 billion ($61.8 million) in fresh equity after an oversubscribed private placement that drew heavy institutional demand, marking one of the most successful capital raises by a Kenyan mid-tier lender in recent years.
The bank had targeted KSh6.09 billion ($47.04 million), but bids surpassed expectations by 31 percent as investors sought exposure to one of the country’s fastest-growing financial institutions.
Investor appetite lifts Family Bank private placement
The raise attracted pension funds, fund managers, insurers, corporates and high-net-worth individuals, underscoring strong confidence in the bank’s strategy, credit discipline and profitability.
Management said proceeds will deepen lending to MSMEs, agribusiness, women- and youth-led enterprises, and green financing areas the bank views as central to its long-term competitiveness in Kenya’s real economy.
Chairman Lazarus Muema said the overwhelming response affirms the institution’s direction. He noted that the capital will reinforce service to underserved sectors and sustain earnings momentum. “This remarkable response is a vote of confidence in Family Bank’s resilient business model and our commitment to SMEs, agriculture and communities across Kenya,” he said.
Chief Executive Officer Nancy Njau added that the new funds improve capital ratios and expand room for credit growth. She highlighted plans to accelerate digital transformation while preparing for a future listing on the Nairobi Securities Exchange. The raise comes at a time when mid-tier lenders face tighter competition for deposits, funding and customer acquisition.
Family Bank’s performance has also been supported by higher loan volumes, improved cost controls and continued investment in digital channels. These measures have further lifted customer activity and supported steady earnings growth.
Stronger balance sheet as lender scales across Kenya
Furthermore, founded in 1984 by Titus Kiondo “TK” Muya, the former micro-lender has grown into one of Kenya’s leading Tier II institutions. With 95 branches across 32 counties, it is now the fourth-largest bank in the country by geographic reach.
According to Billionaires Africa, Muya, who holds a 5.6 percent stake, guided its transformation from a building society to a fully licensed commercial bank in 2007.
Finally, the completed capital raise positions Family Bank to strengthen its balance sheet, expand support for high-growth sectors and advance its regional ambitions.
