TWV Business Desk
Family Bank, a leading mid-tier lender in Kenya, founded by prominent entrepreneur Titus Kiondo Muya, is set to raise Ksh6.2 billion (approximately $48 million) through a private placement as part of its strategic roadmap towards a public listing on the Nairobi Securities Exchange (NSE) by 2026.
The capital raise underscores the bank’s intent to solidify its financial position, strengthen regulatory capital buffers, and fuel regional growth ambitions. The initiative comes on the back of a strong financial performance in the first half of 2025, when the bank posted a 38.7% increase in net profit, reaching Ksh2.28 billion ($17.72 million) for the six months ending June 2025.
According to Family Bank’s Chief Finance Officer (CFO), Paul Ngaragari, the private placement will provide the financial muscle required not only to meet capital adequacy requirements but also to accelerate expansion beyond Kenya’s borders. “This capital injection will position us to pursue new market opportunities across the East African region, starting with Uganda. We also have medium- to long-term ambitions to expand into Tanzania and the Democratic Republic of Congo (DRC),” he said.
The bank’s entry into Uganda represents a crucial first step in its bid to become a regional banking powerhouse. The move reflects a wider trend of Kenyan banks pursuing regional diversification to tap underserved markets and reduce reliance on the competitive domestic sector.
While Uganda is the immediate focus, Family Bank’s long-term strategy includes entry into larger and more complex markets such as Tanzania and the DRC, signalling a bold growth trajectory. The expansion plan comes amid intensifying competition from tier-one banks such as Equity Group, KCB Group, Co-operative Bank, and NCBA, all of which already boast extensive regional footprints. Nonetheless, Family Bank is confident that its customer-centric model, digital innovation, and community-driven approach will give it a competitive edge in new markets.
Founded in 1984 as a building society, Family Bank has undergone significant transformation over the decades. From a single-branch operation, it has grown into one of Kenya’s most prominent mid-sized banks, with 95 branches across 32 counties, serving more than 1.2 million customers.
The lender offers a wide array of financial products, including personal and business banking, SME loans, asset finance, mobile banking, and tailored digital solutions for individuals, micro-enterprises, and corporates. Its consistent focus on innovation and customer satisfaction has earned it industry awards and recognition for advancing financial inclusion and SME development.
At the heart of Family Bank’s story is its founder, Mr Muya, a veteran entrepreneur who has played a pivotal role in shaping Kenya’s banking sector. Beyond the bank, he is an influential investor with interests spanning insurance, real estate, and agriculture, reflecting a deep commitment to economic empowerment and long-term value creation in the region.
With the planned private placement, Family Bank is not only strengthening its balance sheet but also laying the groundwork for an Initial Public Offering (IPO) by 2026. The listing will provide the lender with greater visibility, improved access to capital, and enhanced governance, while offering investors the chance to participate in its growth journey.
If successfully executed, the capital raise and eventual listing could mark a transformative period in the bank’s history, elevating it from a strong domestic player to a formidable regional financial institution.
As East Africa’s financial landscape continues to evolve, Family Bank appears well-positioned to seize emerging opportunities, driven by strong leadership, a clear strategic vision, and a commitment to inclusive banking.
