Family Bank Receives Shareholders’ Approval To Offer 800 Million New Shares

By Catherine Muema On Oct 23, 2023

Family Bank Chief Financial Officer Stephen Ngugi, Chairman Dr. Wilfred Kiboro, CEO Rebecca Mbithi and Chief Legal Officer Eric K. Murai during the Extra-ordinary General Meeting where shareholders voted for the approval of the Bank to offer 800 million shares through a rights issue to strengthen the Bank's Capital Base.

Family Bank has today received formal approval from shareholders to offer up to 800 million new shares through a rights issue. This will increase the Bank’s issued authorized Ordinary shares from the current 1,500,000,000 Ordinary Shares to 2,300,000,000 Ordinary Shares.

Through this increase in Ordinary shares, the Bank targets to raise up to KES 10 billion in the medium term. The capital raise will be achieved through a mix of a rights issue and from new shareholders via a private placement.

The funds raised through the rights issues will go towards strengthening the bank’s capital base, for local and regional growth plans, driving investments in IT infrastructure and new product initiatives and supporting onward lending activities.

“Through this capital raise, we are positioning the Bank for the next phase of growth which will position the bank as a choice bank for our existing and potential clients through customer-first service delivery not only in Kenya but also in the region,” added Rebecca Mbithi.

The rights issue opens on 19th October 2023 and closes on 30th November 2023.