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Process of Buying Shares in Kenya


Shares are important financial securities for Kenyans who want to join investment world.The process of buying shares in Kenya requires less than 3 steps,which involves a stock broker or investment bank and an investor.

There are several attractive investment options in Kenya which the rich are conversant with:Investing in shares,bonds,money market,financial derivatives,trading in oil,importing and selling cheap cars,dealing in real estates,trading in diamond and gold are some of the financial securities and business options that make them extremely rich.

Shares are financial instrument where one owns stake of a company. Returns are neither fixed nor guaranteed but when a company performs better,dividends are guaranteed.

At the end of every financial year, companies declare their profits or losses; the shareholders then receive dividends according to amount invested in those companies.

Sometimes companies don’t issue dividends if the profits are used for expansion of business or when the firm posts losses.

Though investing in shares is a risky venture, in most cases it pays. If you want to buy shares in Kenya ,follow the following procedure:

• The first step when buying shares is to decide what company to put your money in. When selecting a company to invest in, one should make sure the firm has financial stability.

Select a stockbroker/investment bank to use. The two are the only ones that are allowed to transact on your behalf.

Open a CDS account.
The Central Depository System acts as the investor’s securities holding and trading account.This will help you make transactions when need be.

This is the most important account where you will deposit your money and transact whenever need arises.

• The stock broker /Investment bank will then guide you through the process of  buying shares upon which you will be issued with share certificate.

Some of the best companies stock brokers and investment banks include: CBA Bank,NIC bank,Kingdom Securities,CFC Stanbic bank and Kestrel and Suntra investment bank.

You don’t need to have millions to invest in shares and bonds.Even Sh 1,000 per month is enough.

When buying shares,ensure you buy from a company that is performing well in the stock market.Companies in the aviation industry are highly unpredictable while those in real estate,manufacturing industry,insurance and banking industries are highly predictible. Since many investors are risk averse,it’s good they invest in low risk companies such as those in real estate sector.