Due to the number of inquiries we have been getting, thought it was necessary that I provide the requirements investors would need to provide and a few pointers. You are supposed to complete and sign the CDSC (Central Depository and Settlement Corporation) and broker account opening forms, and General Terms and Conditions.
Documents required include:
For individual or joint accounts
- ID or Passport copy
- 2 two color passport size photos. (Some brokers offer to take your passport photos in case you are physically present)
- Evidence of physical address (utility bill, lease or tenancy agreement). Some brokers give you the option to draw and sign a map to your place.
- Email Indemnity (Optional Kes 200/- depending on the broker)
- Signed and sealed CDS 1 and NSE Securities account opening form
- 2 color passport sized photos, ID copies and utility bills of each director and signatories if any.
- Board resolution on approval of account opening including account signatories
- Memorandum and articles of association
- Certificate of incorporation
- Company PIN certificate
- Evidence of physical residence (utility bill, lease or tenancy agreement)
- Evidence of income of the business (bank statement)
- The originals of the above documents need seen and verified physically by the broker, or be certified by a notary public.
Some factors to consider when choosing a broker;
- Whether they are actually registered with the regulatory body in this case which is CMA. This is important since there are fraudulent individuals out there in the market.
- Although it varies with investors, some may prefer being able to buy and sell without having to go to the physical offices. There are brokers who do provide online share trading like NIC securities and CFC’s SBG securities. NIC has gone a step further to provide trading on mobile phones. Online trading may not necessarily be an edge for investors buying with a long-term view but it does facilitate an investor to act on information much faster.
- Quality of service: There are brokers who provide very good quality services to their clients and are easy to reach. There are those who can instruct to buy for you your shares via email and there are those who require you to go to the broker physically and sign documents before they can buy any securities for you.
- Minimum deposits. There are brokers who do not accept amounts below around $5500 or 500,000 and may vary from broker to broker.
Commission is almost identical across the board if not in all. It is usually around 2-2.1% for amounts below 100,000 and reduces to 1.8% for amounts above 100,000. Fixed income transactions are charged at 0.035%.
Here is a list of securities brokerage firms in Nairobi.
- ABC Capital
- African Alliance Kenya Investment Bank
- Afrika Investment Bank
- ApexAfrica Capital
- CBA Capital
- Discount Securities (Under Statutory management)
- Dyer & Blair Investment Bank
- Equity Investment Bank
- Faida Investment Bank
- Francis Drummond & Company
- Genghis Capital
- Kestrel Capital
- Kingdom Securities
- Ngenye Kariuki & Co (Under Statutory management)
- NIC Securities
- Old Mutual Securities
- Renaissance Capital (Kenya)
- SBG Securities(Affiliated to CFC bank)
- Standard Investment Bank
- Sterling Capital
- Suntra Investment Bank
You can get contacts and further information from the respective brokers in their websites. The broker should be able to respond to phone or email inquiries. Note that the list of brokers may increase in future as minimum amounts required to register as a broker were lowered to 20Million shillings or around $250,000 and 1Million for fixed income brokers.