Family Bank has meanwhile set a listing price of Sh18 per share, indicating a quick paper gain of 24.1 percent or an aggregate of Sh1.9 billion for the investors.

Among the investors who joined the lender’s shareholder register after the recent cash call is Kenya Orient Life Assurance with 35.3 million shares, on which it will see a paper gain of Sh123.6 million based on the listing price.

KTDA acquired an additional 103.4 million shares in the private placement, placing its gains on the extra stocks at Sh362 million.

An investor who bought 81.2 million shares through nominee and management services provider Investments & Mortgages will record a gain of Sh284.4 million.

Family Bank says various valuation methods priced its shares as high as Sh43.06 apiece, but it decided to list the stocks at a discount to align with the multiples at which other listed banks are trading.

“The above price [Sh18 per share] strikes the optimal balance between value maximization for existing shareholders and the imperatives of a successful public market debut,” Family Bank says in its information memorandum.

“It is grounded in audited financial data, calibrated against live NSE peer multiples, consistent with OTC price discovery, and has been structured to ensure that Family Bank enters the market with a credible valuation discount that rewards subscribers and supports post-listing price stability.”

OTC refers to the less liquid and less transparent over-the-counter market where Family Bank’s shares have been trading for years.

The bank has not booked the entire amount it was targeting from last year’s private placement as some of the investors await vetting by the Central Bank of Kenya (CBK).

This means that the company’s total issued shares will rise further from the current 1.662 billion units, lifting its market capitalization on the NSE.

The company accepted applications for 552.05 million shares in the private placement but had only issued 357.45 million shares to the investors from whom it received Sh5.18 billion.

“As at 31 December 2025, 357,459,553 shares had been allocated. The remaining 194,596,515 shares were pending allotment, subject to regulatory approval by the Central Bank of Kenya,” Family Bank said.

Once cleared, the remaining group of investors will be allotted the pending shares at a total cost of Sh2.82 billion, bringing the total amount raised to Sh8 billion.

The lender’s issued shares will grow to 1.85 billion from the current 1.66 billion, which will give it a starting market capitalisation of Sh29.9 billion when it joins the main investment market of the NSE on Tuesday next week.

Family Bank’s shareholders have been exempted from the customary two-year lock-in period, giving them freedom to sell their shares and realise some of the gains.

“The Capital Markets Authority has granted Family Bank an exemption from the requirement applicable to a listing by introduction under the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023, which requires controlling shareholders to provide an undertaking restricting the sale of part or the whole of their shareholding for twenty-four (24) months following listing by introduction,” the bank said.

“Accordingly, no lock-in undertaking will apply to Family Bank shareholders in connection with the proposed listing by introduction.”

Mr Muya and his associates are expected to sell part of their holdings, mainly to comply with ownership limits applicable in the banking sector.

The related parties currently hold a combined 35.67 percent stake in the bank, exceeding the maximum ownership of 25 percent.
Compliance with the ownership limits is one of the key reasons for the bank’s listing by introduction –a process in which the firm will list its shares without raising new capital.

The CBK caps the ownership in a bank by a person and his associates at 25 percent to improve corporate governance and mitigate self-dealing.

The regulator has currently extended a concession to the Muya family to hold a combined stake of up to 31.93 percent. The family’s actual ownership is 35.67 percent, meaning it could seek to offload a 3.74 percent stake to comply with the concession, before later moving to full compliance.

Scaling down their ownership to 25 percent will mean selling up to 128.7 million shares, assuming the pending private placement shares are fully allotted.

Proceeds from the private placement will be used for expansion, including lending to small and medium-sized enterprises and investment in digitization.

Family Bank says it plans to maintain a dividend policy of distributing 30 percent of net profits but may vary the rate based on growth plans and other considerations at the discretion of the board.

The lender reported a net income of Sh5.3 billion in the year ended December 2025, rising 55.4 percent from the prior year’s Sh3.4 billion.