Buying shares on the Nairobi Securities Exchange (NSE) is easier in 2026 than it has ever been. Since August 2025 you can buy a single share instead of a block of 100, most stockbrokers open accounts online, and you can fund your account with M-Pesa. What hasn’t changed is that you should understand what you are buying and what it costs before you put money in.
This guide walks through the whole process, from the accounts you need to your first order.
What you are actually buying
A share is a small piece of ownership in a company. When you own Safaricom or KCB shares, you own a fraction of that business. You can make money in two ways:
- Price growth — the share price rises above what you paid and you sell for more.
- Dividends — the company shares part of its profit with shareholders, usually once or twice a year.
Share prices also fall. Money in shares is not guaranteed the way a fixed deposit is, and a company can cut or skip its dividend. Only invest money you will not need in the next few years.
Step 1: Get a CDS account through a licensed stockbroker
All NSE shares are held electronically in a CDS account at the Central Depository & Settlement Corporation (CDSC). You do not open it yourself — a stockbroker (also called a trading participant) opens it for you when you open a trading account with them.
You will need:
- Your national ID or passport
- Your KRA PIN
- A passport-size photo (often a selfie in online apps)
- A bank account or M-Pesa number for payments
- A working phone number and email address
Most brokers now do this fully online and the account is usually ready within one to three working days. We cover the details in our guide to opening a CDS account in Kenya.
Choose a broker licensed by the Capital Markets Authority (CMA). You can check any firm against the CMA’s list of licensees, and Ipahco’s broker directory lists licensed firms with what each one needs from you to get started.
Step 2: Fund your account
Once your account is active, send money to your broker — usually by M-Pesa Paybill or bank transfer, using the account number your broker gives you. The money sits with the broker until you place an order.
Step 3: Research the company before you buy
This is the step most beginners skip. Before buying, look at:
- What the company does and how it makes money.
- The price trend — has the share been rising or falling, and why?
- Dividend history — does it pay regularly? Our dividends calendar lists what NSE companies have announced.
- Trading activity — some NSE shares trade only a few hundred shares a day. A thinly traded share can be hard to sell when you want to.
Ipahco’s screener shows every listed company with its latest price, recent move and any buy entries our rules have raised, so you can compare companies in one place.
Step 4: Place your order
In your broker’s app or by calling your broker, choose the company, the number of shares, and the type of order:
- Market order — buy at the best price currently available. Quick, but on a quiet share the price can be higher than you expected.
- Limit order — buy only at your price or better. If no seller meets your price, the order waits (and may expire). For most NSE shares, a limit order is the safer choice.
Orders can be entered from 9:00 am, and continuous trading runs from 9:30 am to 3:00 pm, Monday to Friday, except public holidays.
Step 5: Confirm your shares arrived
After your order fills, your broker sends a contract note — the receipt showing the price, number of shares and every fee. Your shares then settle into your CDS account. You can confirm your holdings through your broker’s app or with CDSC.
Keep your contract notes. They are your record of what you paid, which you will need when you work out your real profit later. You can also record each trade in Ipahco’s free portfolio tracker to see your cost, value and gain or loss in one place.
What does it cost?
Every buy and every sell carries a brokerage commission plus statutory levies to the NSE, CMA, CDSC and the Investor Compensation Fund, and a small stamp duty. On a typical retail trade the total comes to roughly 1.5% to 2% of the trade value each way, so a share has to rise by about 3–4% before a round trip breaks even. Some brokers also charge a minimum fee per trade, which makes very small orders expensive.
We break every charge down with worked examples in NSE trading costs explained.
Can I buy shares through M-Pesa?
Yes. Safaricom’s Ziidi Trader, in the M-Pesa app, lets you buy NSE shares from one share upwards without opening your own CDS account, for an all-inclusive fee of about 1.5% per trade. It works differently from a normal broker account — your shares are held in a pooled account — and we compare the two in Ziidi Trader vs a stockbroker account.
Beginner mistakes to avoid
- Buying on a tip. A WhatsApp tip is not research. Look at the company yourself.
- Putting everything in one share. Spread money across a few companies and sectors.
- Tiny trades. With minimum fees, buying KES 500 of shares can cost a large slice of the amount in charges.
- Panic selling. Prices move daily. Decide in advance why you own a share and what would make you sell.
- Ignoring dividends’ tax. Dividends are paid after a withholding tax — see our guide to dividends in Kenya.
Frequently asked questions
What is the minimum amount to buy shares in Kenya?
Since August 2025 the NSE lets you trade a single share, so the minimum is the price of one share plus fees. Broker minimum charges mean it usually makes sense to invest at least a few thousand shillings per trade.
How long does it take to open a CDS account?
Usually one to three working days after you submit complete documents, and most brokers let you apply online.
Do I pay tax when I sell NSE shares at a profit?
Gains on shares listed on the NSE are currently exempt from capital gains tax. Dividends are taxed at source — 5% for Kenyan residents.
Can Kenyans abroad buy NSE shares?
Yes. Many brokers open accounts for Kenyans in the diaspora online, using a passport, KRA PIN and a photo.
This guide is for education only and is not investment advice. Check fees and requirements with your broker, and consider speaking to a licensed adviser before investing. Want help getting started? Ipahco offers a one-to-one consultation covering how the market works and how to open a broker account.
