How Family Bank’s KES 29.9 Billion NSE Debut Is Testing Investor Appetite For A Bank Priced Below Book Value

Following CMA approval to list by introduction on the NSE’s Main Investment Market Segment, Family Bank has set a reference price of KES 18.00 per share for its 1.663 billion shares being listed. Trading is expected to begin on 23 June 2026, placing the bank’s implied market capitalisation at roughly KES 29.9 billion.

At that price, the bank is coming to market at about 4.6 times FY2025 earnings and 0.9x book value, A price-to-book ratio below 1.0x means the shares are being introduced at a slight discount to the bank’s reported net asset value, leaving investors to decide whether its earnings growth and franchise strength justify a higher valuation over time. With a declared dividend of KES 1.20 per share, the stock offers an implied dividend yield of 6.7%.

The valuation is supported by a strong growth track record. Profit after tax rose to KES 5.3 billion in FY2025 from KES 2.4 billion in FY2021, while total assets nearly doubled to KES 208.7 billion from KES 113.1 billion over the same period. The bank serves more than 1.3 million customers through 96 branches across 32 counties and held customer deposits of KES 151.9 billion at the end of 2025.

Momentum has continued into 2026. In the first quarter, total assets increased 32.3% year-on-year to KES 230.2 billion, customer deposits grew 27.0% to KES 168.9 billion, shareholders’ funds rose 42.2% to KES 34.7 billion, and net interest income jumped 45.5% to KES 4.7 billion.

Whether investors view KES 18.00 per share as an attractive entry point will become clearer once trading begins on June 23.