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Kenyan Tea Producer Agrees to Acquire 15% Stake in Family Bank

Kenya Tea Development Agency Ltd., the country’s largest grower of the leaves, agreed to buy 15 percent of Family Bank Ltd. for an undisclosed sum, said Peter Munyiri, managing director of the Kenyan lender.

Lap Trust, a pension fund for municipal workers, will take a 7.3 percent stake in the Nairobi-based bank, Munyiri told reporters today in the capital, Nairobi. The two entities will become “anchor shareholders,” he said.

KTDA represents 565,000 small-scale tea growers in Kenya, the world’s largest exporter of the black variety of the leaves. The closely held company accounts for 75 percent of sales at the weekly tea auction in the port city of Mombasa, according to its website.

Family Bank is Kenya’s fifth-biggest lender by outlets. The bank said in April it plans to begin trading its shares on the Nairobi Securities Exchange next year. The listing will take place “in the fullness of time,” Chairman Wilfred Kiboro said at today’s media briefing.

Last month, the bank announced plans to raise 1.25 billion shillings ($14.5 million) by selling stock to existing shareholders. The offering, which will fund the bank’s expansion, closed on Dec. 7 and attracted bids for 61 percent more shares than were offered, Kiboro said, without providing further details.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson in Nairobi at pmrichardson@bloomberg.net.

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