The family of Titus Muya’s combined stake in Family Bank shrunk by 9.3 percentage points following its decision to sit out the bank’s recent capital raising as it seeks to comply with regulatory requirements.
Mr Muya and members of his family previously held eight of the top 10 shareholder positions in the mid-sized lender with a combined stake of 43.3 percent.
Following the Sh8 billion private placement in December 2025, their combined ownership fell to an estimated 34 percent, with five of the related investors falling off the top 10 list.
The bank, scheduled to list on the Nairobi Securities Exchange before the end of June, sold 357.4 million new shares last year in a capital raising venture that brought on board 184 new shareholders to bring its ownership roll to 6,345 investors.
This saw current shareholders who chose not to participate in the capital raising venture diluted.
Mr Muya’s direct stake of 5.6 percent was diluted to 4.4 percent, disclosures in the bank’s annual report show.
The dilution brought down his shareholding into compliance with the Central Bank of Kenya’s regulation that caps individual ownership in a bank at five percent.
Daykio Plantations, a real estate company owned by Mr Muya, saw its shareholding shrink to 9.53 percent from 12.1 percent.
The estate of the late Rachael Njeri, also associated with the Muya family, had its stake drop to ten percent from 12.8 percent.
Persons associated with the bank’s founder such as Brian Muyah, Ann Muya, Mark Keriri and Sheila Kahaki Muya fell off the list of the top ten, meaning their 2.6 percent shareholding each had fallen below 2.07 percent.
Mr Keriri, the vice-chairman of the bank, was disclosed to have a 2.01 percent stake, down from 2.6 percent.
Kenya Tea Development Agency Holding Limited, the largest single shareholder, increased its stake to 18.9 percent from 16.2 percent, having participated in the capital raising.
Others who participated in the private placement include the bank’s chairman, Lazarus Muema, who increased his shareholding by one million shares.
Kenya Orient Life Assurance Limited debuted on the bank’s list of top owners with a 2.12 percent shareholding.
Family Bank, which has already contracted advisers to guide it in the listing process, will be listing by introduction, meaning it will not be raising new capital in the process.
‘For existing shareholders, the planned listing creates an opportunity for improved liquidity and better price discovery of the stock, including a dilution pathway (if it involves fundraising), for investors looking to comply with maximum shareholding requirements by the Central Bank of Kenya,’ said Standard Investment Bank in a note to investors.
Currently the bank’s shares are traded in the over-the-counter (OTC) market, limiting their liquidity. Listing by introduction will provide liquidity for the shares and bring onboard other investors who would otherwise not invest in the stock while in the OTC market.