Family Bank Limited shares climbed 81% between June 23 and July 31, 2026, rising from KES 18.00 to KES 32.50 and lifting the lender’s market capitalisation from KES 29.9 billion to KES 54.0 billion.
The rally followed the bank’s debut on the Nairobi Securities Exchange and coincided with unaudited first half results showing group profit after tax up 62% year on year.
From OTC to NSE
Family Bank listed on the Nairobi Securities Exchange on June 23, 2026, by way of introduction, meaning no new shares were issued and no capital was raised. The bank moved 1.66 billion existing shares from the over the counter market, where they had traded since 2006, onto the NSE’s Main Investment Market Segment under the ticker FMLY. The listing, advised by Standard Investment Bank, ranks among the largest private sector debuts on the Nairobi exchange in more than 17 years, and the first for a domestic bank since Co-operative Bank of Kenya listed in December 2008.
Shares opened at a reference price of KES 18.00 and closed their first trading day at KES 26.00, a 44% gain that valued the bank at KES 43.2 billion. The stock continued to climb, reaching KES 32.50 by July 31 and pushing market capitalisation to KES 54.0 billion.
Interest Income Drives Profit, Fee Income Slips
Group total interest income rose 25.9% to KES 14.3 billion, up from KES 11.4 billion in H1 2025, driven by growth in both the loan book and government securities holdings. Net interest income climbed 40.7% to KES 9.8 billion as interest expense on customer deposits held roughly flat.
Non-interest income moved the other way, falling 14.2% to KES 2.3 billion from KES 2.7 billion, weighed down by softer fee and commission income. Total operating income still grew 25.4% to KES 12.1 billion, comfortably outrunning a 10.7% rise in operating expenses to KES 7.4 billion.
Loan loss provisions rose 50.4% to KES 998 million, faster than the loan book itself, a sign the bank set aside more cover as its balance sheet expanded. Profit before tax rose 59.4% to KES 4.7 billion and profit after tax rose 61.8% to KES 3.7 billion. Earnings per share rose to KES 2.23 from KES 1.75. No interim dividend was declared for the period, unchanged from H1 2025.
| P&L Indicator (KES bn) | H1 2025 | H1 2026 | YoY Change |
|---|---|---|---|
| Total Interest Income | 11.4 | 14.3 | +25.9% |
| Net Interest Income | 7.0 | 9.8 | +40.7% |
| Non-Interest Income | 2.7 | 2.3 | -14.2% |
| Total Operating Income | 9.6 | 12.1 | +25.4% |
| Operating Expenses | 6.7 | 7.4 | +10.7% |
| Loan Loss Provisions | 0.66 | 1.0 | +50.4% |
| Profit Before Tax | 2.9 | 4.7 | +59.4% |
| Profit After Tax | 2.3 | 3.7 | +61.8% |
| Earnings Per Share (KES) | 1.75 | 2.23 | +27.4% |
Balance Sheet Expands, Asset Quality Under Watch
Total assets grew 23.9% to KES 238.9 billion. Customer deposits rose 20.3% to KES 180.2 billion, and net loans and advances grew 10.1% to KES 111.1 billion. Shareholders’ funds increased 32.2% to KES 33.2 billion.
Asset quality moved in a less favourable direction. Gross non-performing loans rose 19.2% to KES 18.1 billion from KES 15.2 billion, broadly in line with balance sheet growth. Net NPL exposure, after provisions and interest in suspense, rose more sharply, from KES 330 million to KES 1.1 billion, an increase the bank did not explain in its published disclosures.
The bank’s liquidity and capital buffers remained well above regulatory minimums. The liquidity ratio stood at 61.3% against a statutory floor of 20%. Core capital covered 15.7% of risk weighted assets against a 10.5% minimum, and total capital covered 18.2% against a 14.5% minimum.
| Balance Sheet Metric (KES bn) | H1 2025 | H1 2026 | YoY Change |
|---|---|---|---|
| Total Assets | 192.9 | 238.9 | +23.9% |
| Customer Deposits | 149.8 | 180.2 | +20.3% |
| Net Loans and Advances | 100.9 | 111.1 | +10.1% |
| Shareholders’ Funds | 25.1 | 33.2 | +32.2% |
| Gross Non-Performing Loans | 15.2 | 18.1 | +19.2% |
| Net NPL Exposure | 0.33 | 1.1 | +244% |
Customer and Digital Metrics
Family Bank said customer numbers rose 7% to 1.4 million. Merchant partnerships increased from 91,500 to 118,846, and active agents rose from 4,500 to 5,000. The bank said 92% of transactions now run through digital channels, including internet banking, Family Pay and Pesapap.
Global Credit Rating reaffirmed the bank’s BBB+(KE) long term and A2(KE) short term issuer ratings during the period, maintaining a stable outlook.
Listing Context
The listing came after a run up in Family Bank’s over the counter share price, which rose from KES 15.21 to KES 20.28 in the six months to March 2026. The NSE reference price of KES 18.00 valued the bank at 0.86 times its reported shareholders’ funds of KES 34.77 billion as of March 2026, a discount management and its advisers said was deliberate given that the listing raised no new capital. Kenya Tea Development Agency Holdings holds the largest single stake in the bank at 18.98%, with founder Titus Muya and associated entities controlling a combined 35.67%.
The bank’s unaudited results for the period were signed off by chairman Lazarus Muema, director FCPA Prof. Winnie Nyamute, and chief executive and managing director Nancy Njau, who said at the listing that the bank was moving into its next phase from a position of strength. Family Bank operates 96 branches and has said it is targeting 100 by the end of 2026.
