How to Open a CDS Account in Kenya

Today I am going to show you How to Open a CDS Account in Kenya.

If you are looking to trade in the Nairobi stock exchange in Kenya, you will need a CDS account. How then does one open a CDS account in Kenya?

In this article, we will look at the following:

CDS account – what is it?
Requirements for opening a CDS account in Kenya
Top places where one can open a CDS account from in Kenya
Charges for opening and maintaining the account

Let’s delve into details below

How to Open a CDS Account in Kenya

Here is the How to Open a CDS Account in Kenya and begin trading shares in Kenya

What is a CDS account?

CDS in full is known as Central Depository System. It is an account that is used for holding of shares and facilitating the exchange of shares between the shareholders and the stock exchange.

A CDS account may be opened in the names of corporate entities or individuals. Corporate investors may, therefore include:

Banks
Companies
Cooperative societies
Insurance companies
State Corporations
NGO’s

Moreover, an individual CDS account may also be jointly owned or singly owned.

Requirements for opening a CDS account in Kenya

There are a few documents that one must present while opening a CDS account in Kenya. These documents consist of the following:

A dully filled completed and signed CDS 1 form by two bank signatories confirming that you own the bank account.
Two recently taken passport size photos
Copies of original ID or passport
If its a company – please present a certificate of registration
Copies of the director’s national IDs or passports are also required as well as two passport size photos for each director.
Additionally, you will need to sign the CDS 1 form in front of a Central Depository agent

Top places where one can open a CDS account from in Kenya

There are many places where one can choose to open their CDS account.

However, the first and best place is through any Central Bank of Kenya branches, which may be Nairobi, Eldoret, Mombasa, Kisumu, or the currency centers which are Nyeri, Meru, and Nakuru.

Please note that if you open your account through the Central Bank, you will not be charged for opening and maintaining your CDS account.

One may also choose to open their CDS account through third parties or proxies. This majorly any licensed stockbroker, investment bank, or even commercial bank. Please note that these parties may charge a monthly maintenance fee.

Charges for opening and maintaining the account

As earlier mentioned, one may incur opening and monthly maintenance account charges based on whom or where they choose to open their CDS account.

If you choose to open your CDS account in Kenya with the Central Bank of Kenya, you will incur Zero charges. However, if you select to open your account through third parties, you may be liable to pay a monthly fee as this party may deem right.

Conclusion – Opening a CDS account in Kenya

A CDS account is an essential thing if you would like to begin online stock trading in Kenya. It is, however, necessary to keep in mind that whichever the third party you are dealing with, it has to be licensed by the Capital Markets Authority and the Central Bank.