How to buy Umeme shares online
By Nairobi Stocks Review
If you are interested in investing in Ugandan companies through the Nairobi Securities Exchange, you may want to consider Umeme Limited shares. In this article, we will explore who owns Umeme, what the company does and how to buy Umeme shares online in Kenya.
When you buy shares in a company, you become a shareholder. As a result, you can participate in the company’s major decisions, such as electing members of its board of directors. You may also earn dividends.
Who owns Umeme and what does the company do?
Umeme is the largest electricity distributor in Uganda. It is like the Kenya Power here. It makes money by billing households and businesses for their electricity consumption. Ugandan government is the largest shareholder in Umeme.
Where and how to buy Umeme shares
Umeme shares are listed on the Nairobi Securities Exchange under “UMME” ticker symbol. Before you can buy Umeme shares, you will need to have a CDS account. (Read How to open a stock trading CDS account in Kenya).
Once you have the account set up, you can proceed to buy Umeme shares. Decide the amount of shares you want to purchase and place your order. Bear in mind that the minimum number of shares you can buy on the NSE Kenya is 100 shares.
How to buy Umeme shares online
You may be able to buy Umeme shares online depending on the stockbroker you choose. With online access, you can buy and sell stocks of NSE-listed companies anywhere and anytime.
The rollout of online stock trading in Kenya is only beginning. Stockbrokers that allow you to buy Umeme shares online are Dyer and Blair, Suntra Investment, Kingdom Securities and Faida Investment Bank. The others are Old Mutual Securities, KCB Capital, SBG Securities, Genghis Capital, Sterling Capital and Kestrel Capital. (Read How to choose the best stockbroker for beginners).
How to buy Umeme shares online with Bonga Points
If you are a Safaricom subscriber, you can use Bonga Points to buy shares of NSE-listed companies like Umeme. Here is how to go about it.
- Go to MySafaricom app or dial *126# on your phone
- Choose Lipa Na Bonga
- Enter your stockbroker’s Paybill number
- Enter your CDS account number
Stockbrokers that allow investors to purchase shares with Bonga Points are Kingdom Securities, Suntra Investments and Dyer & Blair. You can also buy Umeme shares online with Bonga Points at Old Mutual Securities, Faida Investment, AIB-AXYS, ABC Capital, Francis Drummond and NCBA Capital.
Finally, the amount of Bonga Points you need to invest in a stock depends on the share price. When buying shares, five Bonga Points will be equal to Ksh1.