Kenya is one of the most attractive destinations for investment in Sub-Saharan Africa, with a financial infrastructure that provides security, stability and opportunity for growth.
For more investment opportunities in Kenya, view the Kenya Investment Authority (KenInvest) website..CLICK HERE
The Stock Market is a market, which deals in the exchange of shares of publicly quoted companies, and government, corporate and municipal bonds among other instruments for money. The Nairobi Securities Exchange (NSE) is the principal bourse in Kenya, offering an automated platform for the listing and trading of multiple securities.
A share is a piece of ownership of a company or enterprise. When you buy a share, you become an investor and thereby an owner of a piece of the company’s profit or losses.
As a Kenyan living in the diaspora how can I buy shares of Kenyan stock?
You need to open an account with a local stockbroker or investment bank who will in turn open a Central Depository and Settlement Corporation (CDSC) account for you. The CDSC account is where all tradable shares are held electronically.
Account opening forms are typically available on stockbrokers and investment banks websites. The potential investor would first fill the forms and attach scanned copies of a recent passport-size photo, a certified copy of their driver’s license or passport, and a certified copy of a tax return or utility bill. After the broker receives the documentation the investor’s account will be activated and details will be communicated to them within one business day.
Treasury bills are a secure, short-term investment, offering you returns after a relatively short commitment of funds. Treasury bill rates in Kenya are attractive, providing an excellent investment opportunity that is readily available, as they are auctioned each week.
Treasury bills are sold at a discount. This means that investors choose the amount that they will receive when the bill matures, or the face value of the bill, and pay less than that amount when purchasing it.
Individuals and corporate bodies can invest in Treasury bills as a nominee of a commercial bank or investment bank in Kenya, but if you hold a bank account with a local commercial bank you can also invest directly through the Central Bank and avoid additional fees.
Treasury bonds are a secure, medium- to long-term investment that typically offer you interest payments every six months throughout the bond’s maturity. The Central Bank auctions Treasury bonds on a monthly basis, but offers a variety of bonds throughout the year, so prospective investors should regularly check for upcoming auctions.
Most Treasury bonds in Kenya are fixed rate, meaning that the interest rate determined at auction is locked in for the entire life of the bond. This makes Treasury bonds a predictable,