How to Buy Safaricom Shares

Safaricom is one of the most profitable and popular companies listed on the Nairobi Securities Exchange (NSE). Buying Safaricom shares allows you to own a piece of the company and benefit from dividends and share price growth. Here’s a step-by-step guide on how to buy Safaricom shares in Kenya.

Step 1: Open a CDS Account

To buy Safaricom shares, you need a Central Depository and Settlement (CDS) account.

• Visit a licensed stockbroker, investment bank, or your commercial bank.

• Provide your ID, KRA PIN, and passport-sized photos.

• Your broker will open the CDS account for you.

Step 2: Choose a Licensed Stockbroker

You cannot buy shares directly; you need a licensed stockbroker to facilitate the process.

• Research and select a reputable broker registered with the Capital Markets Authority (CMA).

• Stockbrokers charge a small commission on every trade.

Step 3: Fund Your Account

Deposit money into your broker’s account to purchase shares. Ensure you have enough funds to cover both the share price and transaction charges.

Step 4: Place a Buy Order

• Instruct your broker to buy Safaricom shares at the current market price.

• Alternatively, you can set a limit order, where shares are bought only when the price reaches your desired level.

Step 5: Monitor Your Investment

• Once the order is executed, the shares will reflect in your CDS account.

• You can monitor your Safaricom shares using the NSE app or through your broker’s trading platform.

Step 6: Earn Dividends and Growth

• Safaricom pays dividends to its shareholders annually.

• You can also benefit if the share price rises over time.

Tips for Buying Safaricom Shares

• Start with a small investment if you’re new to the stock market.

• Research market trends before placing buy orders.

• Choose a reliable broker with good customer support.

FAQs

1. How much is one Safaricom share?
The price of Safaricom shares changes daily based on NSE market activity.

2. What is the minimum number of Safaricom shares I can buy?
The minimum lot size is usually 100 shares.

3. Can I buy Safaricom shares online?
Yes, through licensed brokers offering mobile apps or online trading platforms.

4. How do I receive Safaricom dividends?
Dividends are paid directly to your bank account linked to your CDS account.

5. Can foreigners buy Safaricom shares?
Yes, both local and foreign investors can buy shares through the NSE.

Conclusion

Buying Safaricom shares is a smart investment choice for many Kenyans. By opening a CDS account, working with a licensed broker, and placing buy orders, you can own part of one of Kenya’s leading companies and grow your wealth.