Family Bank shareholders to ratify plan to list on NSE

Family Bank Limited has called for an Extraordinary General Meeting (EGM) to be held at the end of the month where shareholders are expected to ratify the decision to go public.

A notice by the bank published on Tuesday notified shareholders of the meeting slated for October 27, which will be held virtually.

“Notice is hereby given to the shareholders that in accordance with the Company’s Articles of Association, an Extraordinary General Meeting (EGM) of Family Bank Limited will be held via electronic communication on Monday, October 27,” the notice reads.

The notice by the Company Secretary Eric Murai, lists tabling of proxies, reading the notice convening the meeting, passing special resolutions and consideration of any other business as the matters to be handled in the meeting.

The plan to list is under passing special resolutions.

“That the company be and is hereby authorised to apply for listing by way of introduction of all its issued ordinary shares on the official list of the Nairobi Securities Exchange (NSE),” the notice reads in part.

It added, "And to facilitate the admission of its shares to trading on the main investment market segment (or other relevant segment) of the NSE.”

The notice states that the board of directors is hereby authorised to do all such things as may be necessary, desirable or incidental to the listing by introduction.

“...including but not limited to preparing and submitting all relevant documentation, making all required regulatory filings and submissions, and taking any steps necessary to complete the listing by introduction,” the notice says.

The plan to list was made public in May this year by the Board Chair Lazarus Muema who said the intention is to be listed in 2026. This is in addition to the plan to expand beyond the Kenyan market, which is a strategy other financial institutions in the country are deploying.

“We are going to list our shares in the stock exchange. I think our founder has been waiting for this. This has been TK’s (Titus Muya) dream,” he said.

The push to list has also been encouraged following the over-subscription of the bank’s bond issued in 2021 when it sought to raise Sh3 billion. The bank raised Sh4.4 billion.

“In fact, it was heavily oversubscribed. We got 147 per cent,” said Muema.

Paul Ngaragari, Family Bank Limited Chief Financial Officer, while presenting the bank’s performance for the first quarter of 2025, noted how the institution’s capital adequacy ratio, while still above the minimum, was reducing.

At the time, it stood at 15.8 per cent which was a drop from 16.5 per cent. The minimum requirement is 14.5 per cent.

“What does that mean to investors? The ratio points to an investment opportunity. Our business is growing very fast it is outpacing our capital adequacy ratio,” he said. “This is an investment opportunity being told by these numbers.”

Family Bank Limited reported an asset base of Sh192.7 billion by the end of June 2025 from Sh174 billion in March 2025 and Sh158.3 billion as at June 2024.

Profit after tax in the half year ended June 2025 grew by 38.7 per cent to Sh2.3 billion.