February 28, 2025
Safaricom is one of Kenya’s largest and most profitable companies, making its shares highly sought after by both beginner and experienced investors.
Buying shares in Safaricom allows you to own a portion of the company, potentially benefit from dividends, and grow your wealth over time.
Here’s a step-by-step guide on how to buy shares in Safaricom:
There are several reasons why investing in Safaricom shares is attractive:
As the leading telecommunications provider in Kenya, Safaricom is financially stable and highly profitable.
Safaricom regularly pays dividends to shareholders, providing an income stream.
With continued expansion in mobile money, data, and fintech services, Safaricom has strong growth prospects.
To buy shares in any publicly listed company in Kenya, including Safaricom, you need a CDS account.
This account, managed by the Central Depository and Settlement Corporation (CDSC), holds your shares electronically.
Select a stockbroker or investment bank licensed by the Capital Markets Authority (CMA). Some popular options in Kenya include KCB Capital, Faida Investment Bank, and Dyer & Blair.
Provide your ID, KRA PIN, passport-sized photos, and proof of residence (like a utility bill) to the broker.
Complete the CDS account application form, provided by your broker.
Once the application is processed, you’ll receive your CDS account number, allowing you to trade shares on the Nairobi Securities Exchange (NSE).
Once you have a CDS account, you’ll need to deposit funds into your broker’s account to buy Safaricom shares.
Your broker will provide bank account details for depositing funds. You can transfer money via M-Pesa, bank transfer, or other payment options.
Decide how much you want to invest. Safaricom shares typically trade at affordable prices, so you can start small if you’re new to investing.
After funding your account, you can instruct your broker to buy Safaricom shares on your behalf.
Based on the current Safaricom share price and your budget, decide how many shares you want to buy.
Reach out to your broker via phone, email, or their online platform and place an order to buy Safaricom shares.
Specify the number of shares and the price per share.
The shares will be bought at the current market price.
Set a specific price at which you want to buy the shares. The order will only be executed when the share price meets your target.
Your broker will confirm your order and execute it when the price is favorable.
After purchasing Safaricom shares, you can monitor your investment to track performance.
The Nairobi Securities Exchange website provides updates on Safaricom’s share price and other relevant news.
Many brokers have online portals or apps where you can track your portfolio, check share prices, and access research reports.
As a shareholder, you can access Safaricom’s financial reports, which provide insights into the company’s financial performance.
Safaricom pays dividends to shareholders based on its profits. Here’s how you can benefit:
Dividends are typically paid once a year. You’ll receive payments directly into your bank or M-Pesa account, depending on the payment preference you provided.
If Safaricom’s performance is strong, you may decide to increase your investment by purchasing additional shares.
When you want to sell your Safaricom shares, instruct your broker to sell them on your behalf.
The proceeds will be deposited into your broker’s account, and you can withdraw them from there.
Keep up-to-date with Safaricom’s financial reports, industry news, and market trends to make informed investment decisions.
Stock market investments are best suited for long-term growth, so consider holding onto your Safaricom shares for several years.
Avoid putting all your money in one stock. Consider investing in other companies or sectors to reduce risk.
The minimum amount depends on the current share price. Safaricom shares typically trade at affordable prices, and you can start with as little as Ksh 1,000 to Ksh 2,500 for a small number of shares.
Yes, a CDS account is required to hold your shares electronically and is a standard requirement for all Kenyan investors buying stocks.
Safaricom usually pays dividends once a year, depending on the company’s profits. Dividend amounts and timing are announced in their financial reports.
No, all shares must be bought through a licensed stockbroker or investment bank in Kenya, as they facilitate trades on the NSE.
Factors include Safaricom’s financial performance, changes in the telecommunications industry, government regulations, and general market conditions.
Buying Safaricom shares is a solid way to invest in one of Kenya’s leading companies, offering potential for both growth and dividend income.
By following these steps and staying informed about market trends, you can build a robust portfolio and take advantage of Safaricom’s market presence.
Start small, invest wisely, and monitor your portfolio for a rewarding investment journey in Kenya’s stock market.