Family Bank Limited is set to list at a valuation of Sh29.9 billion or Sh18 per share, making it the eleventh largest bank by market capitalisation on the Nairobi bourse.
Disclosures by the lender place the listing/introduction price per share at Sh18 ahead of its addition to the Nairobi Securities Exchange (NSE) main investment market segment next Tuesday.
The listing share price follows an independent valuation of the company which closely tracks the stock's trading on the over-the-counter (OTC) market, where the bank has traded since 2006.
The listing price presents investors with the opportunity to lock in a dividend yield of 7.44 percent assuming Family Bank leaves its dividend payout at the level of Sh2.2 billion recorded in 2025.
The lender posted a Sh5.3 billion net profit for the year ended December 2025, a rise from Sh3.46 billion a year earlier.
Family Bank will become the eleventh largest listed bank ahead of HFCB which had a market capitalisation of Sh18 billion as of Monday's close.
The 1.66 billion shares to be listed are currently owned by 6,345 shareholders who will benefit from greater liquidity afforded by the NSE.
The listing of the lender by introduction means that it will be allowing its existing shares to list and trade on the public exchange without the issuer raising additional capital.
The listing of the lender is expected to bring new investors to the market, diversify offerings for participants and push the market capitalisation of the Nairobi bourse closer to Sh3.5 trillion.
Family Bank received the approval of the Capital Markets Authority (CMA) to list on the NSE, bringing full circle the introduction of the lender to the bourse after a lengthy delay.
“Family Bank has received formal approval from the CMA to list on the NSE by way of introduction,” said the bank’s Managing Director Nancy Njau.
“With the approval, the bank will list on the NSE on June 23, further affirming its commitment to deliver sustainable growth and marks the next step in the bank’s growth trajectory and long-term value creation journey.”
The bank’s listing will be the second in 2026 following the Kenya Pipeline Company (KPC) initial public offering in March and will bring the number of listed banks on the Nairobi bourse to 12.
The Kenya Tea Development Agency Holding Limited is Family Bank’s single largest shareholder with a stake of 18.9 percent.
Other top shareholders of the bank are the estate of the late Rachael Njeri whose stake stands at 10 percent, the Titus Muya-owned Daykio Plantations with a 9.53 percent stake and Titus Muya who individually holds a 4.4 percent stake in the bank.
Last year, Family Bank raised Sh8 billion through a private placement rights issue that was largely taken up by minor shareholders serving to reduce the stake of the top owners.
The listing of the bank is expected to further reduce the hold of top owners who include the founder, Titus Muya and his associates which has held at nearly one third of total shareholding.
“The founding family’s 31.9 percent shareholding is viewed unfavourably. The bank is actively working to further dilute the founding family’s shareholding to comply with regulatory expectations,” reads a credit rating report issued by South African rating agency GCR Ratings.
