Family Bank handed its founder, Titus Muya, Sh231.3 million in 2024 and 2025 as goodwill payments in recognition of his previous service as an executive and chairman of the lender.
Disclosures in the bank’s 2025 annual report for the first time gave a breakdown of the emoluments per director, revealing the payments to Mr Muya.
Ex-gratia payments to former executives are made as a gesture of goodwill —meaning that there is no obligation on a company to do so— in recognition of long service or to preserve a good relationship with the recipient.
In 2025, Mr Muya was paid a total of Sh128.6 million, which included Sh93.13 million in ex-gratia payments, Sh21.8 million in director’s fees, and Sh13.64 million in allowances.
He was paid Sh165.86 million in 2024, comprising ex-gratia of Sh138.24 million, Sh22.64 million in fees and allowances of Sh4.98 million.
Previous annual reports did not give a detailed breakdown of the directors’ emoluments per individual.
Mr Muya founded the bank in 1984 as Family Finance Building Society, later opening the first branch in Kiambu town in 1985. He served as its CEO from its founding until June 2006, when he moved on to chair the lender’s board until 2012.
Speaking at a bell-ringing ceremony when the bank listed on the Nairobi Securities Exchange (NSE) on Tuesday, Mr Muya outlined the multiple roles he played in its early years through to its transition into a commercial bank in 2007.
“When we started Family Bank, because we didn’t have structures, I had to appoint myself as the first employee, chief executive officer, and two years later as executive chairman of the bank,” said Mr Muya.
“I was holding three positions and doing a lot of things, including lending, human resources, accounts and everything. That is how you struggle when you start an organisation.”
Since 2012, Mr Muya has sat on the Family Bank board as a non-executive director, while retaining a shareholding in the lender that has paid him dividends and earned him capital gains over the years.
Currently, Mr Muya and his associates hold a combined 35.67 percent stake in the bank, equivalent to 593.03 million shares. The associates include family members, Daykio Plantation Ltd, Kenya Orient Life Assurance, and Kenya Orient Insurance.
Family Bank listed 1.662 billion shares on the bourse by introduction on Tuesday, at an entry price of Sh18 per share. The stock rallied to highs of Sh50 on its debut but had receded to lows of Sh23.4 on Wednesday.
Mr Muya directly holds 4.42 percent or 73.4 million shares of the bank, now valued at Sh1.8 billion at Wednesday’s average closing price of Sh24.65.
Various members of his family and their estates directly hold 324.29 million shares valued at Sh7.9 billion, while Daykio Plantation has 158.46 million units valued at Sh3.9 billion.
Kenya Orient Life Assurance holds a 2.13 percent stake or 35.34 million shares valued at Sh871 million, while Kenya Orient Insurance has a 0.09 percent stake or 1.5 million shares, valued at Sh36.9 million.
The businessman is, however, not the only company founder to receive a goodwill payment after exiting a position in the company.
Equity Group founder Peter Munga was handed a Sh50 million one-off gratuity in recognition of his long service as chairman for more than 35 years, when he stepped down in April 2019 at the age of 75 years.
Similar to Family Bank, Equity started out in 1984 as a building society, before getting a commercial bank licence in 2004, and listing on the NSE by introduction in 2006.
The lender entered the market with a market capitalisation of Sh6.3 billion, but this valuation has since climbed to Sh297.18 billion, representing a capital growth of 47 times.
Companies usually list on the bourse in order to achieve price discovery for their shareholders, while also unlocking liquidity for those looking to buy more or sell their units.
Before their respective listings on the NSE, both Equity Group and Family Bank were trading on the less liquid and less transparent over-the-counter (OTC) market.
Equity’s valuation growth shows the gains that a company’s founder can make when it goes public, even if his effective stake is diluted by offloading part of the shares when listing.
With Mr Muya and his associates needing to cut their collective stake to 25 percent in order to comply with the regulatory ownership limits applicable in the banking sector, they could be in line for a windfall running into billions of shillings when they sell the excess shares.
The regulator has extended a concession to the Muya family and associates to hold a combined stake of up to 31.93 percent, meaning they could seek to offload a 3.74 percent stake to comply with the concession before later moving to full compliance.
