Eric Profile picture
11 Aug, 10 tweets, 6 min read
How to buy stocks in The Nairobi Security Exchange (NSE), Kenya:

I will be simple.

First, shares are traded at the NSE.

When you buy a share of a company, you become an owner of that company. You are an investor in that company.

Thread...

#BetterTogether
OPEN A CDS account,

Shares are bought and sold through a special account known as Central Depository System Account (CDS).

Here, your money is stored safely for buying and selling.

CDS accounts are managed by Central Depository & Settlement Corporation Ltd.

#BetterTogether
How to open a CDS account:

- Walk into your bank ( @Coopbankenya , @AbsaKenya, @KCBGroup, @NCBABankKenya or @KeEquityBank etc) and ask for the BROKERAGE DEPARTMENT.

Every bank trading at NSE has one.

#BetterTogether
- Cooperative bank has KINGDOM SECURITIES

- NCBA has NCBA Investment Bank Ltd.

- Equity Bank has Equity Investment bank Ltd.

- KCB has KCB capital.

- ABSA has ABSA Securities Ltd

Etc

#BetterTogether
There are other independent brokers like:

- Dyer & Blair Investment Bank Ltd

- Suntra Investment Bank Ltd

- Genghis Capital Ltd

,among others.

You can also opt to use them instead of the commercial banks.

#BetterTogether
The brokerage firms will help you open a CDS account that you will ise for buying and selling shares at NSE.

- Note that some firms allow online registration but I’d advise you go to their offices and ask your questions.

Have an ID, KRA PIN and Passport photo.

#BetterTogether
The CDS account may take 2 - 3 days for its approval by Central Depository & Settlement Corporation Ltd ( CDSC).

Once you get your account, it is time to begin trading.

Don't be scared, your broker will give you a relationship officer who will help you trade.

#BetterTogether
Brokers have web and mobile apps that will facilitate you to trade at your convenience.

The market closes at 3 PM.

Here is my trading dashboard.

#BetterTogether
You can only own or buy at least 100 shares.

For example, on my dashboard below BRIT ( @BritamEA) trades their shares by close of business at Ksh 8 per share.

Therefore, you will spend at least Ksh 800. So, deposit at least Ksh 1000 in your CDS to buy Britam shares
Investing in shares is a long term investment.

Before you buy them, do a thorough analysis of the market and the company.

Your broker’s relationship officer will help you pick the company that offers a viable return.

So, what are you waiting for?

Start.

#BetterTogether

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