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How To Invest In Shares And Get Financially Stable While Still Young.

Shares are traded at Nairobi Security Exchange (NSE). When you buy a share of a company you become a owner of that company. You are a investor in that company.

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 limited.

To open a CDS account, walk into your bank eg Cooperative bank, Absa Kenya, KCB, NCBA, Equity bank and others. At your bank ask for brokerage department, every bank trading at NSE has one. Example, Cooperative bank has Kingdom securities, NCBA has NCBA investment bank limited, Equity bank has equity investment bank limited and many others.

There are other indipendent brokers like, Dyer & Blair investment bank limited, Suntra investment bank ltd, Genghis capital ltd among others. You can opt to use them instead of the commercial banks.

The brokerage firm will help you open CDS account that you will use for buying and selling shares at NSE. Some firms allow online registration but i would advise you to go to their offices and ask your questions. Carry your ID, KRA pin and passport photo.

The CDS account may take 2 to 3 days for it approval by Central Depository & Settlement Cooperation limited (CDSC). Once you get your account, it time to begin trading.

Don't be scared, your broker will give you a relationship officer who will help you trade. Brokers have web and mobile apps that will facilitate you to trade at your convenience. The market closes at 3pm.

You can only own and buy at least 100 shares, eg the dashboard above Brit (Britam) trade 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 account to buy Britam shares.

Invest in shares, is a long term investment. Before you buy shares do a thorough analysis of the market and the company. Your broker's relationship officer will help you pick the company that offers available return.

What are you waiting for?

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CDS Central Depository KCB NCBA Nairobi Security Exchange


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