September 4, by Ryan Hoover 33 Comments. But high interest rates and instability in the banking sector have left many Kenyan stocks trading at multi-year lows, offering investors a great entry point for exceptional long-term returns.

So, how do you get started investing on the Nairobi Securities Exchange NSE? Here are a few tips. While investing in stocks is one of the best ways to build wealth over time, a positive return is not guaranteed. Before you can start putting your money to work on the NSE, you must first open an account with a licensed stockbroker. Online trading gives you the freedom to buy and sell shares whenever and wherever you want.

Almost all of the above brokers will charge an account opening fee, an account maintenance fee, or both. The amount of these fees varies from broker but is typically about Ksh1, There is no minimum amount required to fund your account, but when you decide to purchase a stock, you must buy at least shares.

Nairobi Securities Exchange - NSE Kenya

You could, therefore, buy shares of this company Mumias Sugar for KES In addition to the account maintenance fee, your stockbroker will charge commission and fees on every trade you execute. The commission rate is the same across all stockbrokers and is equal to:. Most brokers will also ask for one or more of the following: A CDS account is an electronic account that stores all of the shares you own.

Think of it as a satchel or portfolio. You can move this satchel from stockbroker to stockbroker, and all of the shares that you have accumulated move along with it. So, if you find the level of service from your broker to be lower than you expected, rest assured that you can easily take your business elsewhere.

After the account is set up, your broker will instruct you how to fund it and how to place an order to buy shares.

If so, you may find it difficult to collect dividends. Typically, Kenyan companies deliver dividends via direct deposit into a specified bank account or by a cheque denominated in Kenya shillings, which can be next to impossible to cash in the US or UK. And Kenyan banks require you to appear in person in order to open a local bank account. This allows the broker to collect dividends on your behalf and to deposit them directly in your trading account. So, there you have it.

What questions do you have about investing on the NSE? If so, sign up below for updates on the launch of our new newsletter, KenyaVestor , which will focus exclusively on the Nairobi Securities Exchange. September 5, at 1: And thank you very much Ryan. I am glad I subscribed to your updates.

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September 5, at 3: I can assure you that the advise is correct. I have traded for a long time. September 5, at 4: September 5, at 6: But can you please also educate us on investing in other African developing countries. The challenge i have faced so far is how to have a balanced portforlio. Out of 64 companies,very few are making profitable busineses. September 10, at How sure the investment is good since most companies give dividend of 1 to 1. September 12, at The key is to consider the size of the dividend in relation to the share price.

KES 1 or 1. September 13, at Thank you so much Ryan. January 25, at 5: January 25, at 3: February 28, at 4: March 1, at 3: You can click on the link next to any of the brokers listed above. They will have contact details on their respective pages. A phone call may get a quicker response than email for many of them.

March 2, at 1: March 2, at 2: March 3, at March 3, at 4: I would suggest investing in a company that you know well, preferably one that provides a good or service that you are happy with and use regularly.

Listed Companies - Nairobi Securities Exchange (NSE)

Always remember that by buying shares, you are buying a small part of a business. So, buy a business that you believe in! You can see a list of all Kenyan stocks and their current prices here:. March 5, at I am a university student , would you advice on investing in stock? Or there are any limitations that can hinder me from doing such? March 5, at 2: Paying off debt is a sure-fire way to increase your disposable income over the long-term.

March 16, at 4: March 16, at You can find all my favorite Kenyan stocks in KenyaVestor. Hope to have you join us there! March 27, at 9: JOSEPH HUSSEIN KHAYUKHI says. April 10, at 2: Is it true that some stockbrokers in Kenya require that you have a certain minimum amount in your bank account before you can trade with them?. For example I went to Kestrel Capital and they told me that i should be having a minimum of 5 million Kenyan Shillings before I can trade with them.

April 10, at 7: Yes, that is true. Some brokers give their clients access to extensive research and in, order to pay for it, they stipulate that their customers have a minimum amount deposited in their trading account. Larger accounts typically mean larger trading commissions for the brokers. The good news is that the brokers listed in the article above do not require an account minimum.

They may not offer as much research as Kestrel does, but they can still execute trades for you. April 11, at 2: April 22, at 4: Hey Ryan I just completed high school and i have an urge to start investing I have read on how to get online stock brokers and how much they charge.

April 26, at 5: Stock prices vary from company to company. A share of Safaricom stock, for example, presently costs about KES A share of KCB, meanwhile, costs KES The only minimum requirement when investing on the Nairobi Securities Exchange is that you must purchase at least shares with each transaction.

Thus, if you wanted to purchase Safaricom stock, the minimum amount required is presently KES You can find the current price of all Kenyan stocks at this link: April 27, at 3: Yes, the price will determine which shares I can buy because it will determine which shares I can afford but I was wondering if these prices are relevant in any other way.

I checked the link for the prices and I see some shares cost as high as 1, and others less that a shilling. Also, in your opinion which stocks are the best to buy for short term investment and which is the best for long-term investment. April 27, at 5: Hello, I am not a Kenyan though am a resident in Kenya I would like to join NSE how do I start about? May 1, at 1: May 1, at 9: I would suggest starting with a company that you know well — one whose services you use regularly.

Perhaps this is a company like Safaricom. You can see a complete list of available companies here — https: When opening an account with a broker for the first time, you will be asked to apply for a CDS account. This account is an electronic register of all the shares that you own.

After opening it, you can move it from one broker to another. In the meantime, does any other reader have an answer for Kelvin on this? May 25, at 6: May 26, at Students and those who are currently unemployed are still permitted to purchase shares.

But they should take care not to put more money at risk than they can afford to lose, because investing in shares does not guarantee a positive return. Your email address will not be published. My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets. Articles African Stock Markets Performance Botswana BRVM Ghana Kenya Malawi Mauritius Mozambique Namibia Nigeria Rwanda South Africa Tanzania Uganda Zambia Zimbabwe Newsletters JSE Share Advisor KenyaVestor Stock Scout About Login.

Investing in Africa A Field Guide to Sub-Saharan Stock Markets. Home JSE Share Advisor KenyaVestor Contact. Photo by KlnDonnelly Kenya boasts a diverse economy, improving infrastructure, and a young, dynamic population.

Start By Bulletproofing Your Finances While investing in stocks is one of the best ways to build wealth over time, a positive return is not guaranteed. Comments Marvin says September 5, at 1: Keep it up Ryan!

You are truly assisting us fight poverty. Hi Dennis, The key is to consider the size of the dividend in relation to the share price. Feel free to ask any questions you have here. How can I get in touch with a broker? Hi Mary, You can click on the link next to any of the brokers listed above. Hope this helps and happy investing! I completed my highschool last year I want your help in the exchange markets. What specifically can I help you with? Which are some of the sectors that trade often with good profit i have some to start with.

Hi Collin, I would suggest investing in a company that you know well, preferably one that provides a good or service that you are happy with and use regularly. You can see a list of all Kenyan stocks and their current prices here: HI, Ryan am a student and i have save some cash and am trying to invest in stock exchange ,my question is does earn well or i should just keep my money at the bank.

Hi Joseph, Yes, that is true. Hi Victor, Stock prices vary from company to company. Hi Kelvin, I would suggest starting with a company that you know well — one whose services you use regularly. Hi Aguda Students and those who are currently unemployed are still permitted to purchase shares. Leave a Reply Cancel reply Your email address will not be published. About Me My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets.

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