NAIROBI, Kenya– Family Bank has announced plans to raise Sh6.2 billion ($47.9 million) through a private placement, targeting institutional investors to strengthen its balance sheet and fund expansion.
The mid-tier lender reported an after-tax profit of Sh2.2 billion for the half-year ended June 2025, up 36.6 percent from Sh1.6 billion a year earlier.
The strong performance has given the bank confidence to pursue its next growth phase, including a Nairobi Securities Exchange (NSE) listing by 2026 and regional expansion.
“From our simulation, we are looking at that figure to be more than Sh6 billion ($46.4 million) to support the next growth phase. Capital support, of course, is not only Sh6 billion because we also project to have retained earnings,” said Chief Executive Officer Paul Ngaragari.
The placement, which closes at the end of August, is expected to boost capital adequacy.
Family Bank’s ratio currently stands at 15.9 percent only 1.4 percentage points above the Central Bank of Kenya’s minimum requirement of 14.5 percent.
“We definitely need capital to support the rapid growth, but that capital is not for any regulatory purposes it’s not for lending purposes since our liquidity is at 53 percent. For every asset you deploy, you charge capital. That is why the ratio continues to be strained,” Ngaragari added.
The additional funding is viewed as critical to sustaining momentum amid rising credit demand and the bank’s planned foray into regional markets.
Family Bank is prioritizing entry into Uganda, while also eyeing Tanzania and the Democratic Republic of Congo over a five-year horizon.
The capital raise will be one of the largest in the bank’s history, positioning it for greater competitiveness against rivals pursuing regional footprints. Market analysts say the lender’s focus on expansion, coupled with profitability growth, reflects rising investor appetite for financial sector plays despite regulatory headwinds.
If completed, the Sh6.2 billion injection will accelerate Family Bank’s transformation into a stronger mid-tier player with ambitions beyond Kenya’s borders.
