How to open stock trading CDS account in Kenya
By Nairobi Stocks Review
If you are planning to start investing in company shares in Kenya, you will need to have a CDS account. More than 60 companies are listed on the Nairobi Securities Exchange. Many of them pay dividends, which can provide an additional source of income for investors. How do you open a CDS account in Kenya, what are the requirements and how long does it take?
Before getting into the details of how to open a CDS account in Kenya, let’s see what it is and why it is important to have it. A CDS account is like a bank account, except it holds shares instead of cash. The account makes it easy for investors to buy and sell NSE shares as well as monitor their transactions online or through SMS.
CDS account opening requirements
You can open a personal or joint CDS account. Either way, you will be required to supply the following documents when applying for the stock trading account in Kenya.
- A copy of your Kenyan national ID or passport
- Two passport-size photos
- KRA PIN
How to open a CDS account in Kenya
You can open the stock trading account with a bank or stockbroker. Wherever you decide to open it, you will need to fill in and sign a form called CDS 1. Once you complete the form and supply the required documents, your CDS account should be ready within 24 hours. You will be issued with your CDS account number.
How to open a CDS account with Equity Bank
If you are an Equity Bank customer, it might be convenient to open a stock trading account with the bank you are familiar with. You will still need to supply the personal identification documents and complete the CDS 1 form. Since the bank already knows you, the review of your documents may be faster and you can complete the account opening process more quickly.
How to open a CDS account with KCB Bank
KCB Bank has a brokerage department that offers stock trading service to clients. It might be convenient and faster to open a CDS account with KCB if you are already a customer there. Remember, you will still need to complete the account opening form and provide the required personal identification documents.
How to open a CDS account at the Central Bank of Kenya
The Central Bank of Kenya is the bank of banks in the country. Investors can open a CDS account directly with the central bank if they wish. Going straight to the central may be ideal for Kenyans living broad but want to invest in government bonds back home.
The process of opening a CDS account at the Central Bank involves completing certain forms and providing personal information such as national ID number and bank details. You can open a bond trading CDS account with the central bank online by downloading the forms and submitting scanned copies by email.
You now know how to open a CDS account in Kenya, the requirements, various ways to do it, and why having the account is important. Finally, if you would like to open your CDS account through a stockbroker, see how to choose the best stockbroker for beginners.