Family Bank Limited is preparing to debut on the Nairobi Securities Exchange (NSE) with an estimated market valuation of Sh29.9 billion, translating to a listing price of Sh18 per share. The move will position the lender as the eleventh-largest bank on the exchange by market capitalisation. Details released by the bank indicate that its shares will be admitted to the NSE’s Main Investment Market Segment (MIMS) on June 23, with the valuation reflecting an independent assessment that closely mirrors the stock’s performance on the over-the-counter (OTC) market, where it has traded since 2006.
A total of 1.66 billion shares will be listed, offering investors a potential dividend yield of 7.44 percent if the bank maintains its 2025 dividend payout of Sh2.2 billion. The lender reported a strong financial performance in 2025, posting a net profit of Sh5.3 billion, up significantly from Sh3.46 billion recorded the previous year.
Upon listing, Family Bank will rank ahead of HFC, whose market capitalisation stood at Sh18 billion at the close of trading yesterday. The shares to be listed are currently held by 6,345 shareholders, who are expected to benefit from the enhanced liquidity provided by the NSE platform.
The bank is entering the bourse through a listing by introduction, meaning existing shares will begin trading publicly without the institution raising fresh capital. Market analysts expect the move to attract new investors, broaden investment options and contribute to pushing the NSE’s overall market capitalisation closer to the Sh3.5 trillion mark.
Family Bank Managing Director Nancy Njau said the lender had secured approval from the Capital Markets Authority (CMA) to proceed with the listing.
“Family Bank has received formal approval from the CMA to list on the NSE by way of introduction,” she said. “The June 23 listing underscores the bank’s commitment to sustainable growth and represents an important milestone in our long-term value creation strategy.”
The bank’s admission to the NSE will be the second listing in 2026 after the Kenya Pipeline Company (KPC) IPO in March, increasing the number of listed banks on the exchange to 12.
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Among its shareholders, the Kenya Tea Development Agency (KTDA) Holdings is the largest, controlling an 18.9 percent stake. Other notable investors include the estate of the late Rachael Njeri with 10 percent, Daykio Plantations owned by Titus Muya with 9.53 percent, and Muya himself with a 4.4 percent holding.
In 2025, Family Bank raised Sh8 billion through a private placement rights issue, largely subscribed to by smaller shareholders. The exercise diluted the holdings of major investors and was part of broader efforts to align ownership structures with regulatory expectations.
According to a credit rating report by South Africa’s GCR Ratings, regulators have expressed concern over the founding family’s substantial influence, which currently stands at 31.9 percent of the bank’s shareholding. The report noted that the bank is taking steps to further reduce the founding family’s stake in order to meet regulatory requirements and strengthen governance standards.
