Family Bank has announced the closure of its books in preparation for the ninth interest payment under its Medium-Term Note Program 2021 – Tranche 1.
In a formal notice made under the provisions of the Companies Act 2015 and signed by the Company Secretary and Chief Legal Officer Erick Murai, Family Bank announced that the interest payment will be effected on Friday, December 19, 2025, to all bondholders whose names appear on the register as of the close of business on Thursday, December 4, 2025, at 17:00 hours.
This means that any transfers or changes in ownership of the notes must be completed before this deadline to qualify for the upcoming payout.
Family Bank Book Closure
The bank specified two instruments under this tranche:
- FBKBC0052 – A Family Fixed Bond with an interest rate of 13.00%, identified by ISIN KE7000005095.
- FBKBC0053 – A Family Floating Bond with an interest rate of 12.50%, identified by ISIN KE7000005103.
The fixed bond offers a predictable return, while the floating bond adjusts its rate based on market conditions and follows its set maturity schedule.
However, both instruments remain attractive options for investors seeking predictable income streams.
The books will remain closed from Friday, December 5, 2025, to Thursday, December 18, 2025.
During this period, no transfers of the listed notes will be permitted to ensure accurate computation and timely disbursement of interest to eligible holders.
Family Bank launched its Medium-Term Note Program in 2021 to strengthen its capital for lending and support growth initiatives.
The program has attracted strong investor interest, showing confidence in the bank’s financial stability and governance, thanks to its regular interest payments, such as the one scheduled for December.
Investor Confidence and Market Context
To avoid payment delays, Family Bank has instructed bondholders to address any discrepancies promptly.
Bondholders have also been advised to confirm their details on the register before the closure date.
Finally, queries regarding the interest schedule or the books closure process can be directed to Family Bank’s investor relations desk.
As Kenya’s corporate bond market continues to grow, investors are now looking beyond traditional savings.
Family Bank’s notes offer better returns than fixed deposits, attracting both institutional and retail buyers.
Investors have credited the bank’s adherence to regulatory requirements and transparent communication as the reason for the institution’s growing reputation.
Medium-Term Note (MTN) Program Background
Family Bank launched its current Medium-Term Note (MTN) programme in 2021 with regulatory approval from the Capital Markets Authority (CMA) for an issue size of up to Ksh8 billion, or the equivalent in other currencies.
The first tranche, opened in June 2021, was initially set at Ksh3 billion but was oversubscribed, raising Ksh4.42 billion.
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The notes, listed on the Nairobi Securities Exchange, include fixed-rate bonds offering 13.0% per annum and floating-rate bonds pegged to the 182-day Treasury bill plus 250 basis points, with a cap of 13.25% and a floor of 12.50%.
CMA Regulations for Corporate Bond Issuance
Under Kenya’s Capital Markets Authority (CMA) rules, a company issuing fixed‑income securities must have profits in at least two of its last three financial years.
Its total debt, including the new bonds, must not exceed 4 times its net worth.
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The funds from operations-to-total-debt ratio over the previous three years must average at least 40 percent.
If a firm doesn’t meet all requirements, it may issue bonds backed by a guarantor, which must be a bank or insurance firm acceptable to CMA.
Issuers also need to appoint a trustee to represent bondholders.
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