Kenya - How to open a Central Depository System (CDS) Account in Kenya

Advertisement

Procedure

• A Central Depository System (CDS) Account is an electronic account that holds shares only that be transacted via the Nairobi Stock Exchange (NSE). A CDS account can be opened with either;
  • Central Depository and Settlement Corporation Limited (CDSC)
  • Central Bank of Kenya (CBK)
  • Another approved depository.

Apply In-Person:
Open a CDS Account with the Central Bank of Kenya (CBK)

1. To open an account with the Central Bank of Kenya, the applicant should decide whether they want a single or joint account. Minor accounts are prohibited.
2. Download and print the relevant mandate card, Mandate card (Individual) for individual investors, and Mandate card (Corporate) for corporate investors via the CBK website; Treasury Bills and Bonds, or directly download it via these Mandate Card -Individual or Mandate Card-Corporate
3. Complete the card in clear block letters. Ensure your handwriting is neat and visible. Ensure you write your name as it appears on your national identification document. The card should not contain any errors or alternations and must NOT be folded or disf*gured. But don’t forget to attest the card with your signature once completed.
4. Attach a recently taken colored passport-size photograph and a copy of the investor’s Kenyan National Identity Card (ID) or Passport. These documents MUST be certified by your bankers (A local commercial bank based in Kenya).
5. Have the filled-in CDS mandate card certified by your Commercial bank. The investor’s Commercial bank will certify the completed CDS mandate card by way of appending the bank’s stamp and signatures of two of their authorized signatories on the space provided
6. Scan the completed CDS mandate card and email it to [email protected] OR
7. Send the physical mandate and attachments by post to:

   The Director,

   Financial Markets Department

   P.O. Box 60000- 00200, Nairobi,

   Kenya

8. Once the CDS account has been opened, the investor will be notified of the CDS account number via email as provided on the CDS mandate card submitted to CBK. A formal letter of notification will follow thereafter.

Open a CDS Account with the Central Depository and Settlement Corporation Limited (CDSC)

1. The applicant is required to complete the CDS Form 1 (Securities Account Opening/ Maintenance Form), forms are obtainable at the Central Depository and Settlement Corporation Limited (CDSC) offices or downloadable via the CDSC website CDSC Downloadable or directly download it via this CDS Form 1 (Securities Account Opening/ Maintenance Form)
2. Upon obtaining the form, carefully complete it in duplicate with the appropriate information under relevant sections. But don’t forget to attest the forms with your signature once completed.
3. Attach all the documents listed in the “Required Documents” section before submitting the complete registration dossier to the relevant office.
4. The CDA shall enter the data obtained from the Securities Account Opening/Maintenance Form (CDS 1) submitted by the client into the CDS.
5. The CDA shall scan and upload the completed CDS 1 form and all other supporting documents into the CDS and submit the request to CDSC for approval.
6. CDSC will verify the correctness of the information captured in the CDS and the sufficiency of the attached documents before approving the request. Where the information submitted is incorrect or the documentation insufficient, CDSC shall decline the request.
7. Upon CDSC approval the CDS will generate a Client Identification number.
8. The CDA will enter the Client Identification number in the form and will return to the client a copy of the Securities Account Opening/Maintenance Form, duly signed.

Advertisement

Required Documents

• One recent colored passport-size photograph (of the holder). The photograph’s reverse side MUST be certified by the applicant's banker and stamped. It must NOT be stapled or glued to the card.
• An original and clear copy of your national identity card/ passport/ alien certificate for verification.
• An original and clear copy of your Kenya Revenue Authority PIN (KRA PIN) A filled out the email indemnity agreement, which requires a witness.

Office Locations & Contacts

Central Bank of Kenya -CBK
Communication with the Central Bank of Kenya should be addressed to:
Address: Haile Selassie Avenue, Nairobi
Kenya
P.O Box 60000 – 00200, Nairobi, Kenya
Tel / Fax: +254 20 286 0000
Phone: +254 20 286 1000, +254 20 286 3000, +254 709 081 000, +254 709 083 000
Central Bank Contact Details
Central Bank Website

Central Depository and Settlement Corporation Limited (CDSC)
Address: Europa Towers, 10th Floor, Nairobi
Kenya
P.O. BOX 3464-00100 GPO, Nairobi
Kenya
Telephone: +254 (020) 2912000/ +254 (020) 2229405
Mobile: (0724) 256130 / (0733) 222033
CDSC Contact Details
CDSC Website

Nairobi Stock Exchange (NSE)
Address: Nairobi Securities Exchange PLC
55 Westlands Road, Nairobi
Kenya,
P O Box 43633Nairobi, 00100
KENYA
+254 20 2831000 / +254 (020) 222 4200+254 0724 253 783 / +254 0733 222 007
Email: [email protected]
NSE Contact Details
NSE Website

Eligibility

• ONLY Kenyans living in the diaspora and who hold a local (Kenyan) commercial bank account are eligible to apply for a CDS account directly at the Central Bank of Kenya (CBK).
• Non-Kenyans and Kenyans without a local commercial bank account can however still invest in Kenya government securities as nominees of authorized CBK agents which include commercial banks, investment banks, and stock brokers domiciled in Kenya.

Fees

• No fees are associated with this service.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

Please explain the processing time taken in obtaining the document/certificate.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is dkisplayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since January 1908.

Required Information

• National ID or Passport number
• Full Names as they appear on the ID
• Date of Birth/ Gender
• Nationality
• Mobile number
• Email address
• Mailing address including country of residence
• Dividend disposal preference
• Bank Account details
• KRA PIN (for residents)

Need for the Document

• A Central Depository System (CDS) Account is an electronic account that holds shares only that be transacted via the Nairobi Stock Exchange (NSE).

Information which might help

Enter other information which might help.

Other uses of the Document/Certificate

Please explain what are other uses for obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Central Bank of Kenya-Treasury Bills

Others

More information which might help people.