Family bank has embarked on a journey to enter the bourse before the end of October after its shareholders approved the listings proposal of shares at the Nairobi Stock Exchange(NSE) by introduction.
The listings if approved by market regulators will see the shareholders of the firm realize more benefits. However the chairman of the banking institution, T.K Muya Cited capital investment as the major challenge to the expansion strategies the company has adopted, expressing optimism to fight the challenge upon approval by the market regulators.
“The listings if approved by the Central Bank of Kenya, the Capital Markets Authority and the Nairobi stocks exchange will give Kenyans a chance to own a piece of this great organisation,this listings gives us a chance to raise money from capital market either through equity or debt instruments,” said Muya during the banks shareholders Annual General Meeting (AGM).
At the same time the shareholder also passed the Employee Share Option Program, (ESOP) that Muya said aims at motivating staff as as the institution embark on the expansion strategy after the change of the management staff in June 2011, while the board approved an allocation of 1 per cent shareholding at the company.
On his part the new CEO and Managing Director of the the firm, Peter Munyiri, reiterated that the entry to the NSE will create and improve value in terms of share prices as the firm strategies on hitting the continental market next year.
“ Next year we will be eying the market on Southern Sudan among others,we are ready for take off and with clear vision and growth plan with the new team, we will be pursuing these plans and innovating on our products that will appeal to customers and chosen markets,” said Munyiri.
Citing the possibilities of banking million Kenyans and the East Africans coupled with other institutions he said the bank will ensure best Governance practice and Management process.
“With huge distribution network of branches, Agency banking, strategic alliances with telcos and other high value institutions with our expected million customers we will ensure best Governance practice and Management process,” he said.
Munyiri also cited talent and performance management will remain the institution’s center of focus with an aim of achieving optimal value for each expense as the profit centers work on SMART stretched performance targets.
He added: “With Information Communication Technology (ICT),the bank can house million account holders,we are bold enough to pursue regional expansion, this has been facilitated with the implementation of ICT platform which can run the bank after breakout to operate in multiple countries.”
According to CBK rankings, Family Bank is the 5th largest bank in the country by customer base of over 900,000. This the company director said is attributable to a network of over 58 branches across the country.
Currently the bank has an asset of about 22 billion shillings, deposits of 17.5 billion, loan book of about 12 billion and a core capital of 3 billion shillings.