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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, has secured Ksh8 billion ($61.8 million) in fresh capital through an oversubscribed private placement that drew strong demand from institutional and high-net-worth investors.
The bank had targeted Ksh6.09 billion ($47.04 million), but bids exceeded the offer by 31 percent, marking one of the strongest capital raises by a mid-tier Kenyan bank in recent years. The Ksh8 billion ($61.8 million) equity injection not only strengthens the bank’s capital buffers but also supports its regional ambitions while accelerating the digital transformation program.
Family Bank draws broad institutional demand
The offer, which went above $60 million, drew interest from pension funds, fund managers, insurers, corporates, and individual investors. This highlights trust in the lender's long-term strategy, asset quality enhancements, and profitability.
Proceeds will expand lending to MSMEs, agribusiness, women- and youth-led enterprises, and green financing, sectors central to the bank’s push to deepen its role in Kenya’s real economy. Management has signalled that the raise also positions the lender for a planned listing on the Nairobi Securities Exchange.
Family Bank Chairman Lazarus Muema said the outcome demonstrates strong faith in the bank’s model and direction. “This remarkable response is a resounding vote of confidence in Family Bank’s resilient business model, consistent profitability, and our commitment to serving SMEs, agriculture, and underserved communities,” Muema said.
Boosting capital strength and widening the growth runway
Chief Executive Officer Nancy Njau said the new capital enhances the lender’s capacity to scale lending while supporting regulatory capital requirements. “We are deeply grateful to all investors who participated in this landmark raise. The additional equity significantly bolsters our capital ratios and will accelerate lending to priority sectors such as MSMEs, green financing, and women and youth-led enterprises,” she said.
The placement comes as mid-tier Kenyan banks face increasing competition for deposits and capital. Family Bank has posted consistent earnings growth, aided by rising loan volumes, a sharper cost discipline, and investments in digital channels that have lifted customer acquisition and transaction volumes.
Family bank becomes the fourth-largest bank in Kenya
Founded in 1984 as Family Finance Building Society, the Nairobi-based lender evolved into a fully licensed commercial bank in 2007 under the leadership of TK Muya.
Today, the small micro-lender has become one of Kenya’s leading Tier II banks, operating 95 branches across 32 counties, making it the fourth-largest bank in Kenya by geographical reach. Muya, who holds a 5.6 percent stake, served as CEO until 2006 and later as non-executive chairman.
The oversubscribed placement reflects investor belief in the bank’s next phase of growth. With fresh equity in place, this will further strengthen its balance sheet, expand its ability to support high-growth sectors, and reinforce its push into regional markets.
