If you want to own shares on the Nairobi Securities Exchange in your own name, you need a CDS account. It is the account where your shares actually live. This guide explains what it is, what you need to open one, and what to check before you choose where to open it.
What is a CDS account?
CDS stands for Central Depository System, run by the Central Depository & Settlement Corporation (CDSC). Since NSE shares went paperless, there are no share certificates — every share is recorded electronically against a CDS account number.
Your CDS account is separate from your broker’s trading account:
- Your stockbroker places your buy and sell orders and holds your cash.
- CDSC holds your shares in your CDS account, in your name.
That separation matters. If you ever change brokers, your shares stay in your CDS account — they move with you rather than belonging to the broker.
Who can open a CDS account?
- Kenyan citizens and residents aged 18 and over
- Kenyans living abroad (most brokers accept diaspora applications online)
- Foreign investors, through a licensed broker
- Companies, SACCOs, chamas and investment groups (these need their registration documents and officials’ details)
Accounts for children are normally opened by a parent or guardian — ask your broker what they require.
Documents you need
For an individual, most brokers ask for:
- National ID or passport (both sides of the ID)
- KRA PIN certificate
- A passport photo — many apps take a live selfie instead
- Bank account details or an M-Pesa number — where your sale proceeds and dividends will be paid
- Phone number and email address
Some brokers also ask for next-of-kin details and a signature specimen.
How to open a CDS account, step by step
- Pick a stockbroker licensed by the Capital Markets Authority. You can check a firm on the CMA’s list of licensees. Ipahco’s broker directory lists licensed firms and what each needs from you.
- Apply — through the broker’s app or website, or in person at their office.
- Upload or hand in your documents and fill in the account-opening form.
- Wait for approval. The broker submits your details to CDSC. This usually takes one to three working days when your documents are complete.
- Receive your CDS account number and app login. Your CDS number is the one to keep safe — it identifies your shares.
- Fund your account by M-Pesa or bank transfer and you are ready to place your first order.
How much does it cost?
Opening a CDS account through most brokers is free or close to it. You pay when you trade: a brokerage commission plus statutory levies on each buy and each sell (see NSE trading costs explained).
Before signing up, ask the broker directly:
- Is there any account opening or annual account fee?
- What is the commission rate, and is there a minimum charge per trade?
- How do I withdraw money, and does it cost anything?
- How are dividends paid to me?
A broker should answer all four clearly. If they won’t, choose another.
Do I need a CDS account to use Ziidi Trader?
No. Safaricom’s Ziidi Trader in the M-Pesa app holds customers’ shares through a pooled (omnibus) account, so you can buy without your own CDS account. The trade-off is that the shares are not held under your personal CDS number. We explain what that means in Ziidi Trader vs a stockbroker account.
Tips to keep your account safe
- Keep your CDS number, broker login and PIN private — nobody legitimate needs your PIN.
- Turn on transaction alerts from your broker.
- Check your holdings with CDSC from time to time, so you know your shares are where they should be.
- Update your phone number, bank details and next of kin whenever they change. Out-of-date details are a common reason dividends go unpaid.
Frequently asked questions
Can I have more than one CDS account?
Yes. You can open accounts with more than one broker, and each will have its own CDS account.
Can I move my shares to another broker?
Yes. Your broker can transfer your holdings to a CDS account at another broker. Ask the new broker to guide you through the transfer form.
What happens to my shares if my broker closes?
Your shares are held in your CDS account at CDSC, not in the broker’s own name. The Investor Compensation Fund, run under the CMA, also exists to protect investors if a licensed broker fails.
Do I need a bank account?
Most brokers accept either a bank account or an M-Pesa number for payments. Check with your broker how dividends and withdrawals are paid.
This guide is for education only and is not investment advice. Requirements differ slightly between brokers, so confirm the details with the broker you choose. Need a hand with the paperwork? Ipahco’s one-to-one consultation includes help with setting up a broker account.
