How much do you need to start investing in stocks in Kenya?
By Nairobi Stocks Review
Investing in stocks can be a great way to make extra money to complement your main income or save up for future expenditures. If you are considering investing in stocks in Kenya, it is important to know how much money you would need to get started.
The Nairobi Securities Exchange (NSE) is the place company shares are traded in the country. The NSE is open for trading Monday through Friday, except for public holidays. To be able to buy and sell shares on the NSE, you will need to have a CDS account and work with a broker.
Open a CDS account and choose a good stockbroker
A CDS account is a like a bank account, except it holds shares, not money. If you need to provide personal details like name, contacts and government identification documents when opening the account.
You can open the account through a stockbroker. Some brokers charge account opening fee. Brokers also charge a commission on every transaction. A good broker can help you keep transaction costs down and enable you to buy and sell shares online.
How much do you need to start investing in stocks?
The minimum number of shares you can buy on NSE Kenya is 100 shares. Therefore, the amount of capital you need to start investing will depend on the price of the stock you want to buy. Safaricom shares traded at Ksh41 in June 2021. At that price, you would need at least Ksh4,100 to start investing in Safaricom shares.
In another example, BAT Kenya shares traded at about Ksh470 in June 2021. At that price, you would require a capital of Ksh47,000 to start investing in the shares of the cigarette company.