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Family Bank Limited, one of the country’s fastest-growing mid-tier lenders founded by Kenyan tycoon Titus Kiondo ‘TK” Muya, is raising Ksh6.2 billion ($48 million) through a private placement as it gears up for a planned Nairobi Securities Exchange (NSE) listing by 2026.
This follows a strong financial performance, with the bank reporting a 38.7 percent increase in half-year profit to Ksh2.28 billion ($17.72 million) for the six months to June 30, 2025, up from Ksh1.65 billion ($12.78 million) a year earlier.
CFO Paul Ngaragari said the proceeds will strengthen capital buffers and support growth. “We’re targeting more than Ksh6 billion ($46.5 million) to fund the next stage of expansion. Our liquidity remains strong at 53 percent, but additional capital is needed to deploy new assets and sustain our growth,” he explained.
Expansion across East Africa
The private placement, aimed at select institutional and high-net-worth investors, is expected to close by the end of August. Beyond reinforcing its balance sheet, Family Bank is planning to expand regionally. The lender aims to enter Uganda soon, with longer-term plans for the Democratic Republic of Congo and Tanzania.
The capital raise will also ensure compliance with regulatory requirements. As of June, Family Bank’s capital adequacy ratio stood at 15.9 percent, just above the Central Bank of Kenya’s minimum of 14.5 percent. The bank recently secured a $20 million trade finance facility from British International Investment (BII) to support Kenyan small businesses and agribusinesses, highlighting its commitment to SMEs and financial inclusion.
From a single branch to a nationwide presence
TK Muya founded Family Bank in 1984 as Family Bank Building Society to offer affordable banking services to underserved communities. Since then, it has grown into a fully licensed commercial bank regulated by the Central Bank of Kenya. Today, Family Bank operates 95 branches across 32 counties, making it the fourth-largest bank in Kenya by geographical reach.
Muya, who holds a 5.6 percent stake (73.4 million shares), served as CEO until 2006 and later as non-executive chairman. Under his guidance, the bank introduced digital banking solutions such as paperless smart card banking and the PesaPap mobile app, setting a benchmark for fintech services for retail and SME clients. As of June 2025, Family Bank reported total assets of Ksh192.9 billion ($1.5 billion) and deposits of Ksh149.8 billion ($1.16 billion), serving more than 1.2 million customers with support from 6,000 agents and 75,000 merchants nationwide.
Muya diversifies beyond banking ventures
Beyond banking, Muya has diversified investments in insurance, real estate, and agriculture through companies including Daykio Plantations, Kenya Orient Insurance, and Orient Asset Managers. His Family Group Foundation also funds initiatives in education, healthcare, and the environment, supporting scholarships for over 1,000 students across the country.
