How to Open a CDS Account in Kenya
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Want to own a piece of Safaricom, KCB or EABL? Before you buy a single share on the Nairobi Securities Exchange (NSE), you need a CDS account. Think of it as a bank account, but for shares instead of shillings.
What is a CDS Account?
CDS stands for Central Depository System. A CDS account is an electronic account that holds your shares and bonds in your own name, so you don’t need paper share certificates. CDS accounts are kept by the Central Depository and Settlement Corporation (CDSC), a private company authorised and regulated by the Capital Markets Authority (CMA).
You open the account through a Central Depository Agent (CDA): a licensed stockbroker, investment bank or custodian bank. CDSC also lets you open or link an account digitally through its Dosikaa app.
Requirements
For Individuals and Joint Accounts
- A completed and signed CDS 1 account opening form (from your CDA)
- Original national ID or passport, plus a copy (foreign documents must be notarised)
- Two recent passport-size photographs
- KRA PIN certificate
For Children (Junior Accounts)
- The child’s birth certificate
- The parent’s or guardian’s ID documents, photos and KRA PIN
For Companies and Registered Groups
- CDS 1 form from your CDA
- Certificate of incorporation or registration
- Board resolution authorising the account
- CR12 (for companies)
- IDs, photos and KRA PINs of the directors or signatories
How to Open a CDS Account
- Choose a licensed stockbroker or investment bank. See our list of Kenyan stock brokers and list of investment banks.
- Get the CDS 1 form from the broker’s office or website, or start the process on the broker’s app or CDSC’s Dosikaa app.
- Fill in the form and attach (or upload) the documents listed above.
- Submit the form to your broker. They will open the account with CDSC.
- You will receive your CDS account number. Keep it safe; you need it every time you buy or sell shares.
Tips and Warnings
- Keep the copy of your account opening form for your records.
- Your CDA may set up a secret question and answer to identify you. Keep this information confidential.
- Ask your broker about their trading commissions before you start; these are separate from opening the account.
- A CDSC account is for shares and corporate bonds on the NSE. To buy Treasury bills and bonds directly from the Central Bank, you need a separate CBK DhowCSD account.
Ready to buy? Read our guide on how to invest in the Nairobi Securities Exchange.
