Shareholders of Family Bank have unanimously approved a plan to list the company's shares on the Nairobi Securities Exchange (NSE), a landmark decision aimed at propelling the mid-tier lender into the upper echelons of Kenya's banking sector. The approval was granted during a virtual Extraordinary General Meeting (EGM) held on Monday, October 27, 2025, setting the stage for a 2026 debut on the bourse.

The bank will pursue a listing by introduction, a method that involves making existing shares available for public trading without an immediate public offering to raise new capital. This strategy is designed to unlock liquidity for the bank's current shareholders, allowing them to trade their holdings on a regulated public market, and to enhance the overall value of the firm.

Board Chairman Lazarus Muema, speaking after the EGM, emphasized that the decision was a culmination of years of strategic preparation. "As a Board, we have taken time to prepare, to build value and to ensure that when we list, it is from a position of strength," Muema stated on October 27, 2025. "This listing is not just about prestige but about creating long-term value for our shareholders and positioning the Bank for sustainable growth."

Strategic Shift Towards Tier One Status

The move to go public is a core component of Family Bank's five-year strategic plan (2025–2029), which targets elevation to Tier One status, a category currently dominated by Kenya's largest banks like Equity Group, KCB Group, and Co-operative Bank. Listing on the NSE is expected to enhance corporate governance, transparency, and public confidence, critical elements for a bank with ambitious growth targets.

Family Bank's Chief Executive Officer, Nancy Njau, noted that the shareholder endorsement reflects strong confidence in the bank's financial health and strategic direction. "Our financial position today reflects years of disciplined growth and sound balance sheet management," Njau said on October 27, 2025. She highlighted the bank's consistent double-digit profit growth, strong capital ratios that exceed regulatory minimums, and improving asset quality, largely anchored on its significant support for Small and Medium-sized Enterprises (SMEs).

Recent financial results underscore this position. For the first half of 2025, Family Bank reported a 38.7% increase in profit after tax, reaching KSh 2.2 billion. The bank's total asset base grew to KSh 192.8 billion by June 30, 2025, a 21.8% increase from the previous year, while customer deposits rose by 25.7% to KSh 149.7 billion.

The Regulatory Path and Market Implications

With shareholder approval secured, Family Bank's management will now formally seek the green light from the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). These regulatory bodies will scrutinize the bank's application, financial health, and governance structures before granting final permission for the listing to proceed. The bank aims to complete these regulatory processes before the end of the year to remain on track for its 2026 listing goal.

The listing by introduction means Family Bank's 1.305 billion existing shares will be tradable on the NSE, providing a new avenue for investment in Kenya's financial sector. This move follows a successful private placement, the results of which are pending regulatory reporting formalities. The bank's capital adequacy ratio stood at approximately 15.9% in mid-2025, comfortably above the statutory minimum of 14.5%, indicating a solid financial buffer.

The entry of Family Bank onto the NSE is poised to deepen the capital markets and offer investors a new, well-established banking stock. For the Kenyan economy, a more robust and transparent banking sector can foster greater financial stability and inclusion. The bank's focus on SMEs, a critical engine of economic growth in Kenya, means its enhanced capacity post-listing could translate into increased credit access for small businesses across its 96-branch network.

The journey from its origins as a building society in 1984 to a commercial bank in 2007, and now its impending status as a publicly listed company, marks a significant evolution for Family Bank as it seeks to cement its position in the top tier of Kenyan finance.