In this article, I will guide you through step-by-step instructions on how to buy Safaricom shares, including how to open an account, how to research about the research the company, and make your first share purchase.
How to Buy Safaricom Shares in Kenya 2023
Safaricom PLC is the leading telecommunications company in Kenya. It is a publicly traded company listed on the Nairobi Securities Exchange (NSE). The procedure for buying Safaricom shares is the same as buying shares in Kenya.
Here is how to buy Safaricom shares at the Nairobi Securities Exchange:
- Choose Your Stock Broker
- Open a CDSC account
- Fund Your Account
- Buy Your Safaricom Shares
Let’s take a deep dive into how to buy Safaricom Shares in Kenya
1. Choose Your Stock Broker
First, select a licensed stockbroker to help you buy and sell shares. Many stockbrokers are available at the NSE. You can search for a list of licensed stockbrokers on the Nairobi Securities Exchange (NSE) and Central Depository & Settlement Corporation Limited (CDSC) websites.
2. Open a CDSC Account
Open a Central Depository System (CDS) account with the help of your stock broker. With a CDS account, you can buy, sell, or hold any shares at the NSE. You will be required to provide the following documents during the account opening:
- National ID or Passport
- KRA Pin Certificate
- Proof of Residence
- Two recent color passport-sized photos
- Utility Bill/1-page Bank Statement
You can send the above documents to your stock broker agent to complete the account opening process. Once the account has been opened, you will be notified via email. In the email, you will find your CDS account details and pay bill number for funding your account.
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3. Fund Your Account
Once you’ve opened a CDSC account, use the CDSC account number to sign up and log in to your online NSE trading platform. In my case, I use Faida Investment Bank.
To fund your CDSC account, use the MPESA pay bill number provided and your CSDC account as the account number.
4. Buy Your Safaricom Shares
Once you’ve funded your account, it’s now time to buy Safaricom shares. Follow these steps:
- Log in to your Online Trading Platform
- Scroll down and select Safaricom shares represented by the ticker symbol SCOM
- Enter the order quantity you wish to buy in Lots of 100, e.g. 100, 200, and so on.
- Enter the price per share you are willing to buy the Safaricom shares
- Then enter the date for order validity – can be a same-day order, two days, or even one week.
- Lastly, click buy and then submit the buy order.
Your order will be executed immediately if you enter the market supply price of the shares. If you enter the demand price, then you will have to wait a bit longer before your order is executed.