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Family Bank Limited, a commercial bank headquartered in Nairobi and led by Kenyan banker Rebecca Mbithi, is gearing up for regional expansion through a Ksh9.3 billion ($62.1 million) rights issue approved by its shareholders on Wed., Oct. 18.
The move comes as Family Bank seeks to bolster its presence across the East African region, marking a significant step in its growth strategy. The rights issue will offer existing shareholders one additional share for every two held, or a total of 643.5 million new shares at a price of Ksh14.5 ($0.0967) per share.
This substantial capital-raising effort commenced on Oct. 19 and is set to conclude on Nov. 30, with the proceeds earmarked to fuel the bank’s regional expansion initiatives and support new lending activities.
Family Bank’s expansion strategy entails allocating Ksh4 billion ($26.6 million) to venture into new markets, utilizing a combination of greenfield investments and potential mergers and acquisitions.
A further Ksh2 billion ($13.3 million) will be allocated to enhance the bank’s IT infrastructure and introduce new product offerings. Additionally, Ksh3 billion ($20 million) will be dedicated to supporting onward lending activities as the bank aims to diversify its portfolio and strengthen its presence in the region.
Founded in 1984, Family Bank was granted commercial bank status in 2007 following the issuance of a banking license by the Central Bank of Kenya. Presently, under the leadership of Mbithi, the bank operates a network of 93 branches, 5,900 agents, and 144 ATMs, serving customers in various sectors, including retail, corporate, SME, and microbusinesses.
In its 2022 fiscal year, Family Bank witnessed significant financial growth under the leadership of Rebecca Mbithi. The bank’s operating income increased from Ksh10.77 billion ($71.86 million) to Ksh12.13 billion ($80.94 million).
Total assets also saw remarkable growth, rising from Ksh111.74 billion ($745.6 million) to Ksh128.51 billion ($857.5 million), with retained earnings experiencing a marginal improvement from Ksh6.88 billion ($45.9 million) to Ksh6.91 billion ($46.1 million).
