Family Bank's entry into the financial markets through a private placement of ordinary shares has received 131 percent oversubscription, raising KES8 billion against the lender's KES6 billion target.

In a market update on Thursday, the bank said that the additional capital raised will be used to support digitization transformation, onward lending, as well as business expansion in Kenya and in the region.

“This remarkable outcome is a resounding vote of confidence in Family Bank’s resilient business model, consistent profitability, and our unwavering commitment to serving the real economy – particularly SMEs, agriculture, and underserved communities across Kenya," noted Family Bank Chairman Lazarus Muema.

He added, "the overwhelming demand reflects the market’s belief in our digital transformation journey and our purpose-driven approach to inclusive banking."

Family Bank noted that its private placement attracted strong participation in the financial markets, including fund managers, pension funds, insurance companies, individuals, and corporate institutions.

The tier two lender explained that the strong participation from a broad range of players demonstrates exceptional investor confidence in it’s growth strategy, financial performance, and long-term vision.

“We are deeply grateful to all investors who participated in this landmark capital raise. The additional equity significantly bolsters our capital ratios, accelerate lending to priority sectors such as MSMEs, green financing, women and youth- led enterprises. This successful raise positions Family Bank strongly for sustained growth and enhanced shareholder value,” explained Family Bank CEO Nancy Njau in a statement.

Standard Investment Bank (SIB) acted as the Lead Transaction Advisor as well placement agent together with Sterling Capital.

In October, Family Bank shareholders approved the Bank’s plan to list on the Nairobi Securities Exchange (NSE), marking a significant milestone in it's long-term growth journey towards becoming a Tier One Bank.

The listing, which is expected in 2026, will be by way of introduction, where the Bank will list its existing shares for trading without raising new capital. This will allow current shareholders to trade their shares freely on the NSE, unlocking liquidity and long-term value.

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