You may be interested in buying Safaricom shares, but you are stuck or don’t know where exactly to start. This guide provides step-by-step instructions on how to buy Safaricom shares, including how to open an account, how to research about the research the company and make your first share purchase.
How to Buy Safaricom Shares in Kenya 2023
Safaricom PLC is the leading telecommunications company in Kenya. It is a publicly-traded company listed on the Nairobi Securities Exchange (NSE). The procedure for buying Safaricom shares is the same as buying shares in Kenya.
Here is how to buy Safaricom shares at the Nairobi Securities Exchange:
- Choose Your Stock Broker
- Open a CDSC account
- Fund Your Account
- Buy Your Safaricom Shares
Let’s take a deep dive into how to buy Safaricom Shares in Kenya
1. Choose Your Stock Broker
First, select a licensed stockbroker to help you buy and sell shares. Many stockbrokers are available at the NSE. You can search for a list of licensed stockbrokers on the Nairobi Securities Exchange (NSE) and Central Depository & Settlement Corporation Limited (CDSC) websites.
2. Open a CDSC Account
Open a Central Depository System (CDS) account with the help of your stock broker. With a CDS account, you can buy, sell or hold any shares at the NSE. You will be required to provide the following documents during the account opening:
- National ID or Passport
- KRA Pin Certificate
- Proof of Residence
- Two recent colour passport-sized photos
- Utility Bill/1-page Bank Statement
You can send the above documents to your stock broker agent to complete the account opening process. Once the account has been opened, you will be notified via email. In the email, you will find your CDS account details and paybill number for funding your account.
3. Fund Your Account
Once you’ve opened a CDSC account, use the CDSC account number to sign up and log in to your online NSE trading platform. In my case, I use Faida Investment Bank.
To fund your CDSC account, use the MPESA paybill number provided and your CSDC account as the account number.
4. Buy Your Safaricom Shares
Once you’ve funded your account, it’s now time to buy Safaricom shares. Follow these steps:
- Log in to your Online Trading Platform
- Scroll down and select Safaricom shares represented by the ticker symbol SCOM
- Enter the order quantity you wish to buy in Lots of 100, e.g. 100, 200, and so on.
- Enter the price per share you are willing to buy the Safaricom shares
- Then enter the date for order validity – can be same-day order, two days or even one week.
- Lastly, click buy and then submit the buy order.
Your order will be executed immediately if you enter the market supply price of the shares. If you enter the demand price, then you will have to wait a bit longer before your order is executed.
Related: How to Buy Shares In Kenya.
Individual Requirements for Opening a CDS Account
- National ID or Passport
- KRA Pin Certificate
- Proof of Residence
- Two recent colour passport-sized photos
- Utility Bill/1-page Bank Statement
How much do I need to buy Safaricom shares?
As I write this, one Safaricom share is trading at Sh18.50. This means you will need a minimum of KES 1,877 to buy 100 minimum shares.
Can you Buy Shares in Kenya using Bonga Points?
The quick answer is yes. Safaricom PLC and Nairobi Securities Exchange (NSE) announced a partnership to enable customers to redeem their accrued bonga points and invest in the NSE. To invest, customers will redeem their points at a rate of KES 1 for every 5 points via the ‘Lipa Na Bonga’ menu on USSD *126# or MySafaricom App.
Steps to redeem bonga points and invest in the stock market:
- Dial the USSD code *126#
- Select “Lipa na Bonga Points” option
- Select the “Paybill” option
- Enter your broker’s paybill number as the Business Number
- Enter your CDSC account number as the account number
- Enter the amount you want to deposit,
- Then enter your MPESA pin and send
You can now log in to your mobile trading app or the web trading platform to buy Safaricom shares or any other shares you wish to add to your portfolio.
Therefore with the Bonga points redemption rate of KES 1 for every 5 points, you must have at least 9,385 Bonga points to purchase 100 Safaricom shares successfully.
How to Sell Safaricom Shares
Shares are highly liquid assets. This gives you the opportunity to sell your assets anytime during the market open without searching for buyers or sellers in the market. Settle the number of shares you want to sell and the price, then submit your sell order. Once your order is accepted, you will receive the money in your CDSC account where you withdraw via MPesa or bank.
Invest in your Favorite Company
To buy shares in any company, you must do your research and analysis – both fundamental and technical. This will help you understand the prevailing market forces and the dynamics.
I hope this guide has helped on how to buy Safaricom shares and invest towards your financial future. You can buy and hold Safaricom shares long-term and enjoy a relatively stable portfolio, and also earn yearly dividends.
Finally, assess your risk tolerance before investing.
