Family Bank founder Titus Muya and a group of related investors recorded a combined paper gain of Sh4.74 billion on Tuesday after the lender’s shares surged 44 percent during their first day of trading on the Nairobi Securities Exchange (NSE).
The bank, which listed 1.662 billion shares at Sh18 each, closed its debut trading session at Sh26 per share, pushing its market capitalisation to Sh43.23 billion from Sh29.9 billion at listing.
The sharp rise significantly boosted the wealth of Muya and entities linked to him, including family members, Daykio Plantation Ltd, Kenya Orient Life Assurance and Kenya Orient Insurance.
Together, the group controls a 35.67 percent stake in the lender, equivalent to 593.03 million shares.
The value of the combined holding rose to Sh15.42 billion at the close of trading from Sh10.67 billion based on the listing price, translating into a paper gain of Sh4.74 billion in a single day.
Investors who sold their shares during the peak of trading realised even larger returns. Family Bank’s stock climbed to an intra-day high of Sh50 before retreating to close at Sh26, offering early sellers a return of nearly 178 percent over the Sh18 reference price within hours of the listing.
Muya directly owns a 4.42 percent stake in the bank, representing 73.4 million shares whose market value stood at approximately Sh1.9 billion at Tuesday’s closing price.
Members of his family and related estates hold an additional 324.29 million shares valued at Sh8.43 billion. Daykio Plantation, Muya’s agribusiness investment vehicle, owns 158.46 million shares worth Sh4.12 billion.
Kenya Orient Life Assurance holds a 2.13 percent stake, equivalent to 35.34 million shares valued at Sh918.9 million, while Kenya Orient Insurance owns 1.5 million shares, representing a 0.09 percent stake.
The gains extended beyond Muya’s investment circle. Kenya Tea Development Agency (KTDA) Holdings, the bank’s largest shareholder with an 18.98 percent stake, saw the value of its 315.63 million shares increase to Sh8.2 billion from Sh5.68 billion at the listing price.
Family Bank’s NSE debut marks a major milestone for the lender, which has traded on the over-the-counter market since 2006. The move to the main exchange is expected to enhance liquidity, improve price discovery and broaden access to both institutional and retail investors through the NSE’s trading platform.
Family Bank Chairman Lazarus Muema described the listing as a defining moment and a reflection of the confidence that shareholders, customers, employees, regulators and the broader market have placed in the institution over the years.
“As a Board, we have always supported listing as it enhances the Bank’s profile, strengthens corporate governance, and provides greater liquidity for our shareholders. Over the last five years, we have closely monitored the price-to-book multiples of listed banks to determine the optimal timing. We are therefore pleased to have reached this milestone and are confident that this will create long-term value for our shareholders,” said Mr. Muema
The listing underscores the Bank’s evolution from a building society into a leading retail-focused financial institution, serving over 1.3 million customers through 96 branches and digital channels nationwide.
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