Family Bank has embarked on a plan to raise about Sh6.2 billion through a private placement aimed at boosting its capital base and supporting expansion plans.

The cash call, which runs until the end of August, targets select sophisticated investors rather than the public market.

Although the bank’s management has not officially confirmed details of the transaction, people familiar with the process said the lender is already in the market to secure the funding.

The move comes as the bank seeks to strengthen its balance sheet following a period of strong earnings growth.

Family Bank’s Chief Financial Officer, Paul Ngaragari, said the institution was targeting more than Sh6 billion to power its next phase of growth.

“From our simulation, we are looking at that figure to be more than Sh6 billion to support the next growth phase. Capital support, of course, is not only Sh6 billion because we are also projecting we will have retained earnings,” he said.

The lender recorded a 38.6 per cent rise in net profit for the half-year ended June 2025, posting Sh2.2 billion after-tax profit compared to Sh1.6 billion in the same period last year.

Despite this strong performance, its capital ratios have narrowed against statutory thresholds. As of June, the bank’s total capital to total risk-weighted assets stood at 15.9 per cent, leaving it only 1.4 per cent above the minimum regulatory requirement of 14.5 per cent.

Family Bank is also preparing for a public listing at the Nairobi Securities Exchange in 2026 as part of a broader growth strategy.

Beyond Kenya, the lender has set its sights on regional expansion, with Uganda and the Democratic Republic of Congo earmarked as priority markets in the next five years, while leaving the door open for entry into Tanzania.