What is the role of a stockbroker in Kenya?

What is the role of a stockbroker in Kenya?

To buy and sell shares in the Kenyan stock market, you must have access to the exchange where the shares are traded. In this case, the Nairobi Securities Exchange (NSE). But investors cannot individually access the NSE system directly. It would be chaotic, you can imagine.

To ensure organised trading on the NSE, the Capital Markets Authority (CMA) has licensed firms and individuals to buy and sell shares on behalf of investors. These are the stockbrokers. The stockbroker you choose will be in charge of managing your CDS account.

In addition to licensing brokers, the CMA also regulates them to ensure they play by the rules. The CMA has the power to punish or ban rogue stockbrokers in Kenya.


Stockbrokers in Kenya and their services

You can think of stockbrokers as middlemen that investors go through to access the stock market. There are dozens of brokers out there for investors to choose from depending on their needs and preferences. Brokers charge investors a fee for the service of buying and selling shares on their behalf.

While other brokers only focus on executing trades for clients, others offer additional services like providing information to help clients choose the best companies to invest in based on their investing goals. Brokers that offer additional services will charge you more on top of the regular trading fee.


Online stockbrokers in Kenya

Many stockbrokers in Kenya now offer services online. If you are seeking the convenience of being able to trade shares on a smartphone or laptop from the comfort of your living room, here is the list of brokers that have rolled out online trading platforms in Kenya.

  • Dyer and Blair
  • Suntra Investment Bank
  • Old Mutual
  • SBG Securities
  • Kingdom Securities
  • AIB-AXYS Africa Ltd
  • ABC Capital
  • Sterling Capital
  • Faida Investment Bank
  • NCBA
  • Genghis Capital
  • Standard Investment Bank
  • Kestrel Capital
  • African Alliance
  • KCB Capital
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