Family Bank has completed a highly successful private placement of ordinary shares, raising KES 8.004 billion significantly surpassing its target of KES 6.09 billion in one of the strongest capital-raising exercises by a mid-tier Kenyan bank in recent years.
The transaction, concluded on 4 December in Nairobi, achieved an oversubscription rate of 131%, reflecting strong demand from both local and regional investors.
The robust appetite underscores deepening confidence in Kenya’s banking sector as well as the bank’s long-term strategy, particularly as competition intensifies among lenders seeking to expand digital capabilities and credit offerings.
The fresh capital is expected to play a central role in accelerating Family Bank’s digital transformation programme, expanding its lending capacity, and supporting regional growth initiatives.
The Family Bank capital raise also positions the lender to scale its services among key segments such as micro, small, and medium enterprises (MSMEs), agriculture, and underserved communities.
Family Bank Chairman Lazarus Muema described the outcome as a resounding endorsement of the bank’s business fundamentals, highlighting both its stability and broad investor trust.
“This remarkable outcome is a resounding vote of confidence in Family Bank’s resilient business model, consistent profitability, and unwavering commitment to serving the real economy—particularly SMEs, agriculture, and underserved communities across Kenya,” Mr Muema said.
“The overwhelming demand reflects the market’s belief in our digital transformation journey and our purpose-driven approach to inclusive banking.”
The private placement drew participation from a diverse base of investors, including fund managers, insurance companies, pension schemes, corporate institutions, and high-net-worth individuals.
According to disclosures provided in the press release, the strength of the Family Bank capital raise demonstrates broad-based confidence in the bank’s financial performance and its long-term expansion strategy.
The bank has posted steady profitability in recent years and has been investing heavily in digital channels, risk management systems, and innovative products designed to support small businesses.
As of September 2025, the bank reported Core Capital of KES 19.61B and Total Shareholders’ Funds of KES 22.37B. The new injection materially boosts capital strength and lending headroom.
Family Bank Chief Executive Officer Nancy Njau praised the investors who took part in the exercise, describing the capital injection as a transformative moment for the institution.
“We are deeply grateful to all investors who participated in this landmark capital raise. The additional equity significantly bolsters our capital ratios and will accelerate lending to priority sectors such as MSMEs, green financing, and women- and youth-led enterprises,” Ms Njau said.
“This successful raise positions Family Bank strongly for sustained growth and enhanced shareholder value.”
Capital adequacy remains a key requirement for Kenyan banks as regulators tighten oversight and lenders compete to grow their balance sheets through technology-led solutions, alternative credit-scoring models, and fintech partnerships.
Several banks have undertaken capital-raising initiatives over the past three years to maintain compliance and fund expansion.
The KES 8.04 billion raised is expected to place Family Bank in a stronger position to pursue new lending opportunities as economic activity begins to stabilise after a period of high inflation, currency pressures, and elevated interest rates.
Standard Investment Bank (SIB) acted as the Lead Transaction Advisor, while Sterling Capital served as a placement agent for the deal.
The oversubscription reflects growing investor confidence in well-managed mid-tier banks that have demonstrated consistent performance despite a challenging macroeconomic environment.
Family Bank, which serves more than two million customers across Kenya, has been positioning itself as a technology-driven lender offering inclusive financial solutions.
Do you have any story or press releases you want to share? Send tips to editor@envestreetfinancial.com
Follow us on Twitter, Facebook, or LinkedIn to ensure you don’t miss out on any