1. Understand How the Stock Market Works

• Research how trading works on the NSE and familiarize yourself with common terms like dividends, capital gains, brokerage fees, taxes.

• Dividends are the share of profits you receive once a year when the company you invested in decides to distribute part of the profits they earned during the year.

• Capital gains are the “profits” you make from selling your shares when the price of the share you are selling is higher than the price of the share when you bought it.

A Central Depository and Settlement (CDS) account is essential if you intend to trade shares listed on the Nairobi Securities Exchange (NSE). It holds your shares electronically and facilitates the transfer of shares traded on the Stock Exchange.

2.Get a CDS Account

How can you get a CDS account?

1. Choose a stockbroker: They will open a CDS account on your behalf if you are doing it for the first time.
2. Sign up through your stockbroker’s platform: When registering for the first time, look for the option labeled “Open a New Trading Account.”

3. Choose a Stockbroker

Here is a list of stockbrokers in Kenya approved by Capital Markets Authority

Click here to see the whole list

• Dyer and Blair
• Suntra Investment Bank
• Old Mutual
• SBG Securities
• Kingdom Securities
• AIB-AXYS Africa Ltd
• ABC Capital
• Sterling Capital
• Faida Investment Bank
• NCBA
• Genghis Capital
• Standard Investment Bank
• Kestrel Capital
• African Alliance
• KCB Capital

4. What costs are associated with investing in shares in Kenya?

1. Brokerage Fee

All stock brokers charge a % of the amount you are investing in.

It ranges between 1.3% to 3%

Eg, if you invest kes 42000 worth of shares, they will charge you 1.3% of 42000= 546

Investment Amount (KES)	Brokerage Fee (%)	Calculation	Brokerage Fee
42,000	1.30%	42,000 × 0.013	(KES) 546

2. Levy

CDSC transaction levy	0.08%
CMA transaction levy	0.12%
CDSC guarantee fund	0.01%
NSE transaction levy	0.12%
CMA guarantee fund	0.01%

Watch this video for shares investment tips