How to buy shares in Kenya

What you need before you start

• A national ID or passport. The broker checks it against the CDS registry, so the name must match exactly.
• A KRA PIN. Every CDS account is tied to a tax PIN; dividends are taxed at source using it.
• A phone number and email. Order confirmations, contract notes and CDS statements arrive there.
• A passport-size photo and a signature (uploaded in the app, or signed at the branch).
• Money to invest. Since 1 August 2025 the NSE lets you trade any number of shares, even one, so a first order in a KES 10 share can be a few hundred shillings plus fees. Some apps set their own minimum, typically KES 500 to 1,000.

Step 1 · Open a CDS account

The Central Depository System (CDS) is the electronic register that records who owns which shares. It is run by the Central Depository and Settlement Corporation (CDSC). You cannot hold NSE shares without a CDS account, and you open one through a broker (a Central Depository Agent) or through the Dosikaa app rather than with the CDSC directly. The full walk-through is in How to open a CDS account in Kenya.

1. 1

   Pick a licensed broker or app

   Any CMA-licensed stockbroker or investment bank, or an app that sits on top of one (list below). The account is yours and can be moved to another broker later.

2. 2

   Fill in the CDS 1 form

   In the app this is the onboarding flow: ID, KRA PIN, photo, signature and a next of kin. At a branch it is a paper form and takes a working day or two.

3. 3

   Wait for the CDS number

   You receive a CDS account number by SMS or email once CDSC approves it; brokers typically quote 24 to 48 hours, and Dosikaa issues the number inside the app.

One person can hold more than one CDS account (one per broker), but shares bought through one broker sit in that broker's CDS account until you ask to move them.

Step 2 · Choose a broker or app

Stockbrokers and investment banks licensed by the Capital Markets Authority (CMA) are the only firms allowed to place orders on the NSE. Most now offer an app; a few newer apps are built on top of a licensed broker or hold shares for you in a nominee account. This list is as of September 2026 and is a description, not advice. The full licensee list with websites is in NSE stockbrokers: list and fees.

Check the CMA licensee list before sending money to anyone. A legitimate broker will never ask you to pay into a personal M-PESA number.

Step 3 · Fund the account and place your order

1. 1

   Fund by M-PESA or bank transfer

   Apps show a paybill or Lipa na M-PESA option; transfers reflect within minutes. Bank transfers to the broker's client account take up to a day.

2. 2

   Search the ticker

   Type the company name or ticker, for example SCOM for Safaricom or EQTY for Equity Group. The app shows the last traded price and the current bid and ask.

3. 3

   Choose quantity and price

   Any whole number of shares. A market order takes whatever price is available in the order book; a limit order only fills at your price or better and can sit unfilled. See Your first order: market vs limit.

4. 4

   Confirm and wait for the fill

   The NSE trades from 9.30 am to 3 pm on weekdays, after a 9 am pre-open. You get a contract note by email once the order fills.

Prices on KenyaStocks are end of day: the close after 3 pm. Your broker app shows the bids and asks as they stand during the session, so the price you pay can differ from the close shown here.

Fees on every trade

Costs are a percentage of the trade value and are the same whether you buy or sell. In September 2026 the total for a trade under KES 100,000 is about 2.1 %, made up of:

• Brokerage commission: 1.76 % on trades under KES 100,000, as one broker's published schedule states it (VAT included); a lower rate applies above that.
• NSE transaction levy: 0.12 %.
• CMA levy: 0.12 %.
• CDSC levy: 0.08 %.
• CDSC Guarantee Fund: 0.01 %.
• CMA Guarantee Fund: 0.01 %.

Above KES 100,000 the commission cap drops, so larger trades cost about 1.8 % all in (ABC Capital fee schedule, CDSC fees). Some apps charge a flat fee for very small orders; read the fee page before the first trade.

Settlement · T+3

The NSE settles on T+3: three working days after the trade date, the shares move into your CDS account and the cash moves to the seller. Until then the shares show as pending. If you sell, the money is available to withdraw on the third working day, and most brokers pay it out to M-PESA or your bank the same day.

Tax

• Dividends: 5 % withholding tax for Kenyan residents, deducted before the dividend reaches you; it is a final tax. Non-residents pay 15 %.
• Capital gains: gains on shares listed on the NSE are exempt from capital gains tax. You keep the whole gain.
• Bonus shares and rights: no tax when issued; treated like any other shares when sold.

Rates as at September 2026 from the PwC Kenya withholding tax table (reviewed 17 July 2026); the capital gains exemption is paragraph 36(g)(ii) of the First Schedule to the Income Tax Act (Cap. 470): a gain on the transfer of securities traded on a securities exchange licensed by the Capital Markets Authority is not chargeable. This is a plain summary, not tax advice; rates change in the Finance Act each year.

Buying from abroad

Kenyans in the diaspora and foreign investors can open a CDS account without visiting Kenya. The broker onboards you remotely with a notarised copy of your passport, proof of address abroad, a KRA PIN (a non-resident PIN can be obtained online) and a bank account for dividends. The detail is in Buying NSE shares from abroad.

• Funding: international bank transfer into the broker's client account; some brokers accept card top-ups. M-PESA works only with a Kenyan line.
• Withholding tax: 15 % on dividends for non-residents instead of 5 %, unless a double-tax treaty sets a lower rate (PwC Kenya WHT table).
• Currency: shares trade in Kenyan shillings, so your return also depends on the KES rate when you move money in and out.
• Foreign ownership: there is no limit on foreign ownership of most NSE companies; a few sectors keep local shareholding rules that the broker will flag.

Where to look next

Browse every listed company to see prices and volume, or start with the ones people search for most: Safaricom, Equity Group and KCB Group. If you are weighing shares against a money market fund or Treasury bills, read Shares vs money market funds vs T-bills.