(Ecofin Agency) - • Family Bank plans to list on the Nairobi Stock Exchange in 2026 to boost share liquidity and finance its growth strategy
• The IPO marks a potential revival for the NSE, which hasn’t seen a fund-raising listing since 2015
• The bank also aims to modernize its core systems and expand regionally under a five-year plan

Kenya’s Family Bank has announced plans to list on the Nairobi Stock Exchange (NSE) in 2026, aiming to improve share liquidity and raise capital for future expansion. The disclosure was made during the release of the bank’s Q1 2025 financial results on May 21, 2025.

Board Chairman Lazarus Muema confirmed the listing forms part of the bank’s five-year strategic roadmap (2025–2029), which seeks to enhance the negotiability of its shares and support growth initiatives. The bank had previously planned an IPO for 2023 but postponed it due to weak market conditions. At that time, NSE market capitalization had declined to KES1.43 trillion ($11 billion) from KES1.96 trillion a year earlier, according to the Capital Markets Authority.

The updated IPO target aligns with signs of recovery at the NSE. In 2024, the NASI index rose 34.1%, from 92.0 in January to 123.5 in December, reversing a 27.7% drop in 2023. Contributing factors included a decline in average inflation to 4.5% in 2024 (from 7.7% in 2023) and a 17.4% appreciation of the Kenyan shilling, following a 26.8% depreciation the previous year. These improvements have fostered a more stable investment environment. The exact size of the offering and share allocation will depend on prevailing market conditions and investor appetite.

The IPO is part of a broader growth strategy under which Family Bank aims to join Kenya’s top-tier banking institutions by 2029. To achieve this, the bank will need to grow its asset base, expand its footprint across East Africa, and modernize its core banking infrastructure. It plans to invest more than KES1 billion in system upgrades over a 27-month period, financed through a combination of internal funds and external support. Although specific regional markets have not been disclosed, the bank stated it will assess opportunities across the sub-region.

If successful, Family Bank’s IPO would represent the first fund-raising listing on the NSE since 2015, when Stanlib Investments floated the Fahari I-REIT, raising KES3.6 billion out of a KES12.5 billion target.

Public offerings on the NSE have been rare over the past decade due to limited market depth, a narrow range of instruments, and low liquidity. With only 66 listed firms, compared to South Africa’s 274, the NSE remains relatively small. Many family-owned businesses remain reluctant to list, citing concerns over capital dilution, control loss, and listing costs.

In Q1 2025, Family Bank reported a pre-tax profit of KES1.5 billion, a 15.4% year-on-year increase driven by higher interest income, growth in customer deposits, and strategic investments.