Family Bank Limited is edging closer to a Nairobi Securities Exchange (NSE) debut as shareholders prepare to vote on a listing proposal, even as the lender reports a sharp rise in profitability and outlines ambitions to join Kenya’s top-tier banks by 2029.
According to news reports on Thursday, the lender has scheduled an Extraordinary General Meeting (EGM) for October 27, 2025, to decide on whether to list its ordinary shares on the NSE by introduction.
If approved, it would mark the first major bank listing in Kenya in years — a move that could revive activity in a market that has struggled to attract new issuers.
Listing options on the table
Under a listing by introduction, Family Bank would allow existing shares to begin trading on the NSE without raising fresh capital. This would improve liquidity for shareholders, who currently rely on over-the-counter trades, and bring the bank under the NSE’s disclosure and reporting framework.
The board has also signaled openness to an Initial Public Offering (IPO) in the future, should market conditions improve. A public offer would strengthen the bank’s capital base, providing funds for regional expansion and investment in new technology.
The decision to list comes at a critical juncture for Kenya’s capital markets. The NSE has faced a prolonged drought in new issuances, with investor sentiment dampened by weak equity performance and subdued liquidity. A successful listing by a mid-tier lender could set a precedent for other banks to follow.
Strong earnings momentum
Family Bank’s growth story has been anchored by strong earnings momentum. In the first half of 2025, the lender reported a 39% year-on-year jump in net profit to KSh 2.28 billion ($17.6 million), while interest income climbed 24% on the back of an expanding loan book of KSh 100.9 billion ($780.4 million) and securities worth KSh 3.4 billion ($26.3 million).
Further analysis shows Family Bank’s profit growth was the strongest among nine major Kenyan banks. I&M Group Plc followed with a 36% increase in after-tax profit, trailed by Equity Group Holdings at 17% and NCBA Group Plc at 12.6%.
Other domestic players also posted solid results, including Absa Bank Kenya Plc (9.1%), Co-operative Bank of Kenya (8.3%), and Kenya Commercial Bank (8%). In contrast, foreign-owned lenders struggled: Stanbic Holdings Plc recorded a 9% profit decline, while Standard Chartered Bank Kenya posted a sharp 21% drop, the steepest in the peer group.
Family Bank set aside KSh 664 million ($5.14 million) in loan-loss provisions as gross non-performing loans rose slightly to KSh 15.2 billion ($117.56 million), from KSh 14.1 billion ($109.05 million), but net Non-Performing Loans (NPLs) held steady at KSh 3.4 billion($26.30 million).
With a capital adequacy ratio of 13.3% against the regulatory minimum of 10.5% and liquidity of 53.1% compared with the 20% requirement, the bank remains well cushioned.
Despite the strong results, risks remain. The bank’s NPL ratio stood at 14.1% in early 2025 — below the industry average of 16% but still elevated, reflecting persistent credit risk in the economy. Its cost-to-income ratio, above 60%, highlights ongoing efficiency pressures.
Investor appetite for new listings also remains uncertain. The NSE has seen few fresh entries in recent years, raising questions about whether Family Bank’s debut will attract robust secondary market activity.
Ambition to join Tier 1 by 2029
Family Bank’s 2025–2029 strategic plan seeks to transform the lender into a holding company structure, expand into East and Central Africa, and invest KSh 1 billion ($7.73 million ) in digital systems. The long-term goal: to break into Kenya’s Tier 1 banking group, currently dominated by the “big five” lenders.
Whether the NSE listing becomes a springboard to Tier 1 status will depend not only on earnings momentum but also on how the bank navigates rising competition, credit risks, and investor skepticism. For now, the October 27 shareholder vote is set to be a defining moment — both for Family Bank and Kenya’s equity market.
Note: The financial figures were converted to US dollars using the average official exchange rate of Ksh129.3/$1 for H1 2025
