If you want to buy or sell shares on the Nairobi Securities Exchange (NSE), you must have a CDS account. No exceptions.
Since 2002 the NSE has been 100% scripless (no more paper certificates), so every single share you own is held electronically in the Central Depository System, and the CDS account is your personal “digital safe” inside that system.
Think of it like this:
| Everyday Analogy | Stock Market Reality |
|---|---|
| M-Pesa wallet | CDS account (holds your shares) |
| Safaricom | CDSC (Central Depository & Settlement Corporation) — the “bank” behind the wallet |
| Your phone number | Your CDS account number (unique 7-digit identifier) |
Why 97% of Kenyans Still Don’t Have One (and why you should)
- Only ~3% of adult Kenyans own listed securities (2024 CMA data).
- Most people think you need “big money” or complicated paperwork; you don’t.
- A CDS account costs as little as KES 200–500 to open and is now 100% online in under 10 minutes.
The Two Types of CDS Accounts You Can Open Today
| Type | Best For | Key Features | Typical Cost |
|---|---|---|---|
| e-CDS (Online) | Individuals, beginners, diaspora | Open via app/website, no branch visit, instant approval | KES 200–400 |
| Physical CDS | Trusts, companies, joint accounts | Requires signed forms & branch visit | KES 500–1,000 |
99% of new retail investors now go e-CDS.
READ ALSO:The Complete Process of Opening a CDS Account and Accessing the Stock Market
Step-by-Step: How to Open Your CDS Account in 2026 (Flowchart + Real Process)
- Choose a stockbroker or investment bank (examples: AIB-AXYS, Faida, KCB Capital, Dyer & Blair, SBG Securities, NCBA Wealth, etc.).
- Download their mobile app or visit their portal.
- Upload:
- Clear photo/selfie
- National ID or passport
- KRA PIN certificate
- (Optional) Bank statement or proof of address
- Fill in basic details (name, phone, email, occupation).
- Sign electronically (using OTP sent to your phone).
- Pay the one-time CDS setup fee (KES 200–500, deducted from your trading account or M-Pesa).
- Receive your CDS account number instantly (format: 1234567).
- Fund your trading account → start buying Safaricom, Equity, KCB, EABL, BAT, etc.
Visual Flowchart
Choose Broker → Download App → Upload ID + PIN + Selfie
↓
e-Sign Forms → Pay KES 200–500 → CDS # Issued in <10 mins
↓
Fund Trading Account → Trade on NSE (Next Day!)What Your CDS Account Actually Does
| Function | Explanation |
|---|---|
| Holds all your NSE, USE & RSE shares electronically | No risk of losing paper certificates |
| Receives dividends directly | Paid straight into linked bank/M-Pesa |
| Enables instant settlement (T+2) | Sell shares → money in account in 2 business days |
| Allows pledging as loan collateral | Use shares to get cheaper bank loans |
| Works across all CMA-licensed brokers | You can move brokers without closing the CDS |
Pro Tips Most People Miss
- One person = one CDS account for life (even if you change brokers).
- Your CDS number never changes; treat it like your bank account number.
- You can link the same CDS to multiple brokers (useful for IPOs and different research).
- Diaspora? Open 100% online; no need to visit Kenya.
Bottom Line
A CDS account is simply your permanent shareholder ID in Kenya’s capital markets. It costs less than a decent lunch, takes 10 minutes to open, and is the single mandatory key that unlocks NSE trading, IPOs, REITs, and corporate bonds.
No CDS account means you cannot legally own listed shares in Kenya.
Disclaimer: The content provided here is for educational and informational purposes only and does not constitute financial advice, investment advice, a recommendation, or an offer to buy or sell any securities or financial instruments. Always conduct your own research and consult a licensed financial advisor or investment professional before making any investment decisions. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
