About CDSC

  • How do I open a CDS account?

    By completing and signing a securities account opening/maintenance form with your CDA. The form is called CDS 1.

  • Can I use a different Stockbroker from the one I have been using?

    Yes, you can open accounts through as many stockbrokers as you want. However, when an account is opened using one stockbroker, only that stockbroker can transact on that account

  • Can I use my shares as collateral/security for a loan?

    Yes. You and the lender will complete a Pledge Form (CDS 5) and deliver it to your CDA. The lender will forward the forms to CDSC through your CDA. CDSC thus marks the shares as pledged to the lender and confirms this to the lender and yourself. When shares are pledged you cannot sell them.

  • Do I have to open a CDS account?

    Yes, if you intend to trade in shares that are listed on the Nairobi Stock Exchange. Soon, bonds will also be deposited into the CDS.

  • Do I lose my dividends and bonuses?

    No, you will still get your entitlements without any change. Bonus shares are credited directly into your CDS account.

  • How can I move from one Stockbroker to another?

    By completing and signing the Securities Transfer Form, (CDS 4(A) + CDS 4(B) supplied to you by your stockbroker. The form must be signed also by your current CDA (CDS 4A) and your new CDA (CDS 4B)

  • How does the pledge get removed from my account?

    When you pay the loan, the lender completes the necessary Form (CDS6) instructing CDSC to remove the pledge.

  • How long does it take to complete a trade in CDS?

    A maximum of 5 days. Your stockbroker can arrange for a shorter period if you want.

  • How long does it take to process the Pledge?

    Within 24 hours of the documents reaching CDSC.

  • How safe is CDS?

    CDSC has taken measures to ensure the security of your shares. The company has offsite back up facilities and procedures that would ensure business continuity in the event of anything happening either to the computer system or its usual premises.

    CDSC has taken precautions to ensure its system is not interfered with. CDSC has employed staff of high integrity and keep very high levels of confidentiality. Where appropriate and available the Company has taken insurance.

  • What are the benefits of CDS?

    CDS assures you of safer faster and easier trading in your securities. You do not have to wait for the issue of certificates before you can trade again as your shares are credited to your account 5 days after the date of trade.

  • What are the benefits of having a CDS Account?
    • Immediate transfer of securities
    • Elimination of risks associated with physical certificates such as bad delivery, fake securities among others
    • Reduction in paperwork involved in transfer of securities;
    • Reduction of transaction cost
    • Nomination facility
    • Change in address recorded when CDA gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately
    • Transmission of securities is done by CDA eliminating correspondence with the companies in which investor holds securities
    • Convenient method of consolidation of CDA accounts
    • Holding investments in equity, debt instruments and Government securities in a single account
    • Automatic credit into securities account, of shares, arising out of split or a consolidation or a merger among others.
  • What do I do to change if I need to change my address?

    You will complete and submit Securities Account Maintenance Form (CDS 1) to your CDA with the new address or indeed any other changed details.

  • What do I get to prove I have deposited shares into my CDS A/c?
    • You get the duplicate copy of the deposit form (CDS 2)
    • You get a monthly statement from CDSC if you have a trade that month.
    • You get a statement upon request.
    • The statements are issued directly to your email or postal address as indicated on the form.
  • What do I get when I open an account?

    You will obtain from your CDA a CDS account number together with a duplicate copy of the account opening form for your records. You will also agree a secret question and answer with your CDA for purposes of identifying you. Please keep the question and answer confidential.

  • What do I need to open a CDS account?

    You need two recently taken passport size photographs, original National ID or passport. In the case of a company you need the original certificate of incorporation, and if you are an organization registered in any other way you need the certificate of registration. Directors of a company will also need to provide their ID Cards and passport size photographs.

    You need to sign the form (CDS 1) before your Central Depository Agent (CDA)

  • What happens to the certificates I already have?

    you must open a CDS account and have the shares deposited into your account, otherwise you will not be able to trade in those shares. The process is called immobilization of shares.

  • What if I had already pledged my shares to a bank/lender and left them my certificates?

    You can agree with the lender to have the shares immobilized and immediately marked as pledged in the CDS.

  • What if I have any complaints about CDSC's services?

    Please write to us at This email address is being protected from spambots. You need JavaScript enabled to view it. or visit our offices at Nation Centre 10th floor.

  • What if I want my certificate back?

    Having completed the dematerialization process (where all shares were converted from physical into electronic form) you can no longer be issued with a share certificate but you can get a CDSC account statement as proof of your holdings

  • What is a CDA?

    CDA means Central Depository Agent. It is either a Stockbroker, an Investment Bank or a Custodian Bank who has been authorized by CDSC to open accounts in CDS on behalf of investors.

  • What is a CDS account?

    It is an electronic account that holds shares only.

  • What is a depository?

    A depository is like a bank, which holds securities (like shares, bonds, Government Securities among others) for investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.

  • What is CDSC?

    CDSC stands for the Central Depository and Settlement Corporation Ltd, a company incorporated under the Companies Act and approved to establish a central depository under the Central Depository Act, 2000.

  • What is the CDS - CDS ni nini?

    CDS stands for the Central Depository System. This is a computer system operated by The Central Depository and Settlement Corporation (CDSC) that facilitates holdings of shares in electronic accounts, opened by shareholders and manages the process of transferring shares traded at the Stock Exchange.

    CDS kwa urefu ni Central Depository System .Hii ni njia kupitia tarakilishi inayotumiwa na Shirika la The Central Depository Corporation ili kuhifadhi stakabadhi za hisa kwa njia ya elektroniki na ambayo hufunguliwa na wenye hisa ili kusimamia ubadilishanaji wa hisa katika soko la hisa.

  • What is the process of depositing shares?
    • Visit a CDA with the certificates you want to deposit.
    • Be sure you have already opened an account or are ready to do so.
    • You will be issued with and assisted to complete a Security Deposit Form (CDS 2).
    • Sign your form with the signature used when buying the shares.
    • Return the form to the CDA together with the certificates you have included on the form to be deposited.
    • You will be given a duplicate copy of the completed and signed form, after the CDA has countersigned as evidence of your deposit.
    • The CDA will forward the form and the certificate to the company's share registrar for verification
    • When the registrar confirms the certificates as genuine, they will forward the verified forms to CDSC and the shares will be deposited in your account.
    • Once the shares are in your account you can trade in them.
  • When do I get a statement from CDS

    If you have had activity in your account, you will receive a statement from CDS at the end of that month. You can request for an interim statement of your account any time you wish. You will be charged a fee of Kshs.50 per interim statement.

    It is mandatory to fill in your address, code and town on the Account Opening Form (CDS 1) in order for you to receive your statements promptly. You view your statements on your mobile. To register, send the word Register to 22372 and you will receive instructions on how to register for the service.

    Each SMS costs Kshs.10.00 You can also get your statements via the email that you registered at the point of opening your account. If you didn't submit an email address or require to change it, please get in touch with your CDA . Email is free!

  • Where can I ask any more questions about CDSC and CDS?

    Please feel free to contact our helpdesk at

    2229407 or 0724 256 130, 0733 222 033.

    Or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Who are CDAs?

    All licensed Members of the Nairobi Stock Exchange and Custodian banks are CDAs.

  • Who are the shareholders of CDSC?

    Capital Markets Challenge Fund Ltd - 50%

    Nairobi Stock Exchange Ltd. - 20%

    AKS Nominees Ltd - 18%

    Capital Markets Investor Compensation Fund - 7%

    Uganda Securities Exchange Ltd - 2.5%

    Dar es Salaam Stock Exchange Ltd -  2.5%

     

  • Who is a Custodian?

    A Custodian is an independent agency who holds the physical custody of the Financial Securities owned by an investor of the CDSC.

  • Who is a Registrar?

    A registrar is the entity that carries out share transfers, transmission and consolidation of shares of on behalf of a company and attends to queries relating to non-receipt of dividends on shares of the company.

  • Who regulates CDSC?

    The Capital Markets Authority (CMA)

  • Will I be able to change the securities offered in a pledge?

    Yes. If the pledgee [lender] agrees, you will be able to change the securities offered in a pledge.

  • Will I be able to operate joint accounts?

    Yes.

  • Will I be restricted to having an account with only one CDA?

    No. There are no restrictions on the number of CDAs you can open accounts with.

  • Will I have to keep any minimum balance of securities in my account with my CDA?

    No. The depository has not prescribed any minimum balance. You can have zero balance in your account.

  • Will I receive dividend on the pledged securities?

    The pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if the pledge is invoked and on record date the shares are in the pledgee's account.

  • Will it cost me more to use CDS?

    No. There is absolutely no increase in cost for the CDS accountholders.

  • Will someone else be able to operate my account on my behalf on the basis of a power of attorney?

    Yes. If you authorize any person to operate your account by executing a power of attorney and submitting it to your CDA. This can be agreed upon between your CDA and yourself.

M-Akiba Retail Bond

  • What is M-Akiba Retail Bond and how different is it from the other bonds previously issued by the Government?

    M-Akiba Bond is a Retail Bond based on the Mobile platform that is tailor made for the common Mwananchi.

    In the past years, the Government has been issuing Treasury Bonds and Infrastructure bonds with a minimum investment amount of not less than Kshs.50,000.00. This meant that only a few individuals and corporate bodies have been able to participate.

    This special bond is affordable to all citizens because the minimum amount an investor is required to invest has been slashed to Kshs.3,000.00 down from Kshs.50,000.00.

  • Can I sell my bond before the maturity date?

    Yes. In times of need or emergencies, an investor can sell or buy more of the M-Akiba bond easily and quickly in the market. The value of the bond will fluctuate daily depending on its demand and supply and so the bond will have a new price every day. An investor can therefore buy or sell a bond on any day of his or her choice. There are no penalties for selling a bond before the maturity date.

  • Do I have to open another CDS account if I already have one?

    The M-Akiba maturity period is 3 years (three) years. You can however realize your gains before maturity by selling your bond.

  • How can I track my investment?

    You can get to view your client statement by ..... enabling you to track your investment from the date of purchase to the day of maturity or sale of the bond

  • How do I buy the M-Akiba bond?

    We can insert a summarized customer journey

  • How do I earn/make money from M-Akiba bond?

    Income is earned by the investor on the invested amount. The investor can also sell the bond at a

    premium in the secondary market

  • How do I Open M-Akiba CDS account?

    Ensure you have registered your mobile number for Mobile Money Tranfer. Load your account with at least 3,000 shillings; ensure to factor in the cost of buying the bond. Go to your phone , Dial the USSD Code *889# follow the rest of the instructions and you are on your way to saving with the M- Akiba.

  • How does investing in the bond work?

    The person who intends to invest in the bonds (Investor) buys the bonds at a certain price called the Face Value of the bond or Par value. He will then earn interest at a certain rate called Coupon rate calculated on the Face value of the bond. The interest is usually paid out to the investor semi annually (every 6 months).

    When the bond matures, the investor is paid back the face value of the bond. An investor can decide not to hold the bond to maturity. He can sell the bond to other investors at the face value Selling the bond at a discount means he sells it for less than the face value while at a Premium means selling it at more than the face value.

    There are two ways one can benefit from the bonds. One is by earning the interest that is paid out semi annually and two is by selling the bond at a premium and getting the capital gain.

  • Is there a limit on how much I can buy?

    Yes with M-Akiba, the limits shall be according to allowed maximum transaction amounts by the various Mobile Network Operators (MNO’s)

  • What are the benefits of investing in M-Akiba Retail Bond?
    • M-Akiba Bond is a low risk savings/investments
    • It is affordable
    • It is a sure source of income from the interest earned semi annually and selling at a premium)
    • Agreed upon returns in form of interest paid –semi annually
    • The bond is tax exempt
    • Liquidity as one can cash in when need arises
    • A way of saving money for the future
    • Convenient and confidential
    • You can transact Anywhere, Anytime within the republic of Kenya
    • No need for a bank account, you use mobile money
  • What is a bond?
    A bond is a loan between a borrower and a lender. The borrower promises to pay the lender some interest quarterly or semi-annually at some date in the future. The borrower also promises to repay the initial money invested by the lender on maturity of the Bond. There are various types of bonds issued in Kenya by the Government and Corporate Bodies.

    Typically, a bond is a medium to long term debt instrument, usually longer than one year issued by the borrower to raise money in local currency.

  • When will I get my returns?

    The M-Akiba maturity period is 3 years (three) years. You can however realize your gains before maturity by selling your bond.

  • Who can buy M-Akiba Retail Bond?

    Any individual, for as long as you are registered for Mobile Money (Mpesa, Airtel money, Orange Money, Equitel etc) and that you have an M-Akiba CDS account which is free and easy to open.

  • Who is the owner of the bond?

    The issuer of the M-Akiba Bond is the government of Kenya through the National Treasury

  • Who is the owner of the bond?

    The issuer of the M-Akiba Bond is the government of Kenya through the National Treasury

  • Why buy the M-Akiba bond?

    The purpose of this bond is to provide the government with the necessary funds to finance its ambitious infrastructural development projects for the betterment of Kenyan public and the economy.