Family Bank Limited has called an Extraordinary General Meeting (EGM) for its shareholders on 27 October, where they will vote on a proposal to list the bank’s shares on the Nairobi Securities Exchange (NSE).
The announcement, issued by the bank’s company secretary Eric K. Marete, signals a pivotal step in the lender’s long-awaited ambition to become a publicly traded company in Kenya.
According to the notice, the EGM will seek shareholder approval for the listing by way of introduction of all its issued ordinary shares. This means that Family Bank will not initially raise new capital from investors but will allow its existing shares to be traded on the Main Investment Market Segment of the NSE.
The proposed resolution gives the bank’s Board of Directors the authority to take all actions necessary to implement the listing. This includes securing regulatory approvals, negotiating with the Capital Markets Authority, and arranging for the electronic settlement of shares.
The bank’s shareholders are being asked to vote on two key resolutions:
To approve the listing of Family Bank’s issued ordinary shares on the NSE.
To authorise the board to complete any ancillary steps required for the Family Bank NSE listing, including regulatory filings and the engagement of professional advisers.
Shareholders will participate in the meeting electronically, in line with provisions of the Companies Act and the bank’s Articles of Association. Registration for the virtual EGM opens on 3 October and will close on 19 October.
Family Bank, which began as a building society in 1984 before transforming into a fully-fledged commercial bank in 2007, has steadily grown into one of Kenya’s mid-tier lenders.
It now boasts over 90 branches across the country and has built a reputation for supporting small and medium-sized enterprises (SMEs).
A successful Family Bank NSE listing would mark the culmination of more than a decade of preparation. Family Bank had previously shelved listing plans, citing market volatility and the need to strengthen its balance sheet.
In recent years, however, the bank has posted improved profitability and expanded its customer base, laying the groundwork for a public debut.
By listing through introduction, the bank avoids immediate dilution of existing shares while positioning itself for future capital raises.
The decision to seek shareholder approval comes at a time when Kenya’s capital markets are seeking to attract more domestic listings. The NSE has struggled in recent years with declining new issuances, as some firms opted for private equity or debt financing instead of going public.
The bank has outlined detailed procedures for participation in the EGM. Shareholders will be required to register using a unique USSD code or via email. They must provide their national ID or passport details and their Central Depository and Settlement Corporation (CDSC) account information.
Voting will be conducted electronically, with results published within 24 hours of the meeting’s conclusion. Shareholders can submit questions in advance, and directors will provide written responses during the meeting.
If successful, Family Bank would join the ranks of other Kenyan lenders such as KCB Group, Equity Group, and Cooperative Bank, which are already listed on the NSE. This would not only raise the bank’s profile but also increase competition among listed lenders.
The Central Bank of Kenya, which regulates commercial banks, has been encouraging financial institutions to strengthen their governance frameworks and improve their capital positions. Family Bank’s move is therefore aligned with broader industry reforms.
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