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Family Bank is set to hold an Extraordinary General Meeting (EGM) on October 27, 2025, where shareholders will vote on a proposal to list the bank's ordinary shares on the Nairobi Securities Exchange (NSE) by introduction. This strategic move aims to enhance liquidity for existing shareholders and support the bank's ambitious expansion plans.
Family Bank is poised for a significant shift in its corporate structure as it seeks to list its ordinary shares on the Nairobi Securities Exchange (NSE) by way of introduction. An Extraordinary General Meeting (EGM) has been scheduled for October 27, 2025, where shareholders will cast their votes on this pivotal proposal. The virtual meeting, announced through a notice published on Tuesday, will address special resolutions authorising the bank to apply for listing on the NSE's main investment market segment.
The decision to pursue an NSE listing, initially made public in May 2025 by Board Chair Lazarus Muema, is a cornerstone of Family Bank's five-year strategic roadmap (2025–2029). This plan aims to improve the tradability and liquidity of its shares, enabling existing shareholders to more easily buy and sell their holdings. Furthermore, the listing is intended to facilitate capital raising for future expansion, including venturing into underserved counties and modernising its core banking systems.
Family Bank's push for a public listing follows a period of robust growth. The bank reported a 38.7% increase in net earnings for the first half of 2025, reaching KSh 2.3 billion. Its asset base expanded to KSh 192.7 billion by June 2025, up from KSh 158.3 billion in June 2024. This growth has, however, led to a moderate decline in its capital adequacy ratio, from 16.5% to 15.8% in Q1 2025, though it remains above the minimum regulatory requirement of 14.5%.
Acting Chief Financial Officer Paul Ngaragari highlighted that the declining capital adequacy ratio, while still strong, signals rapid business growth outpacing capital, thus presenting an investment opportunity. The bank's successful oversubscription of a KSh 3 billion bond in 2021, raising KSh 4.4 billion, further underscored investor confidence and the potential for a public offering.
The proposed listing by introduction means Family Bank will float its existing shares on the NSE without necessarily raising new capital immediately. This method allows for increased liquidity for current shareholders. The bank's board of directors has been authorised to undertake all necessary steps, including preparing documentation and making regulatory filings, to facilitate this listing. The NSE, regulated by the Capital Markets Authority (CMA), provides a structured environment for trading securities, promoting transparency and good governance among listed companies.
Analysts view this development as potentially influencing public debate and policy execution, urging clarity on timelines, costs, and safeguards. The listing is anticipated to enhance liquidity for shareholders and improve transparency. For the NSE, Family Bank's listing could be a significant boost, potentially ending a prolonged drought of new listings and restoring market confidence. It would also offer investors exposure to a mid-tier lender with a strong earnings growth trajectory.
While the listing presents numerous opportunities, potential risks include market volatility impacting share performance and the costs associated with maintaining a public listing. However, a recovering capital market is expected to provide a conducive environment, enhancing liquidity and capital appreciation potential. The move also aligns with the bank's strategy to expand beyond Kenya, a trend observed among other financial institutions in the country.
The exact size of the offering and share allocation will depend on prevailing market conditions and investor appetite. While the bank aims for a listing by introduction, it may consider a formal Initial Public Offering (IPO) if institutional capital is not secured on favourable terms, or if market conditions are particularly favourable.
Investors and market observers will be closely watching the outcome of the October 27 EGM and subsequent regulatory approvals. The success of Family Bank's listing could signal a renewed interest in the NSE for other privately held companies and potentially attract further investment into Kenya's capital markets. The bank's performance post-listing and its execution of regional expansion and digital transformation strategies will also be key indicators.
The Nairobi Securities Exchange has recently seen efforts to boost retail participation, including dropping the minimum 100 shares trading rule. Other financial institutions in Kenya are also pursuing expansion strategies, both domestically and regionally.
