How to Buy Safaricom Shares in Kenya
Safaricom is among the fastest-growing businesses in the telecommunications sector in Kenya. Investing in Safaricom helps you get shares and dividends.
You can also buy and sell Safaricom shares, but let’s check how you can buy them before selling. Here’s a step-by-step guide on How to Buy Safaricom Shares in Kenya
Open a CDCS account
This account is similar to a bank account, where you can receive your funds. Account opening is free for individuals, companies, groups, and organizations.
However, you will need some requirements to open a CDS account at any bank branch or Safaricom agent.
- Original ID
- KRA Certificate
- 2 Passports
Please note that Safaricom pays dividends through M-Pesa and not direct bank transfers. A CDS account helps you to select the preferred method of payment.
A CDCS account is accepted worldwide and can use for buying, storing bought shares, and selling others according to your preference. Your details will be approved if you follow the correct procedure.
Identify a stock broker
There are many stock brokers in Kenya, but only a few are approved by the Nairobi Securities Exchange (NSE). Accredited stoke brokers in Kenya are mainly banks and known organizations.
A few of them include:
- Old Mutual Securities
- Suntra Investment
- ABC Capital
- EFG Hermes Kenya
- Equity bank investment
While the list may be endless, identifying an accredited broker can save you a lot of losses when trading with Safaricom shares.
Make an order
Once you’ve known the rates per share, you want to request them from Safaricom. Visit any bank of your choice, depending on your agreement with the stockbroker.
You will be required to fill some multiple forms and wait for your details to be verified and approved. You must invest in the number of shares according to Safaricom’s regulations.
You can only buy shares in groups of a hundred. Therefore, the minimum number of shares will be 100, but you can buy more if you have more money.
To avoid losses and restart the entire process, always invest a higher amount than the stipulated price.
For example, if Safaricom’s sell per share is Ksh 44.90, raise it to around Ksh 46. The daily sales keep fluctuating and are unpredictable.
Safaricom will refund you if the money falls below the daily price. Raising your amount ensures that your order is executed, and providing more covers you because of the fluctuations.
If the daily price goes above your amount, your order will elapse for about two days, you will be required to restart the entire process.
As an upcoming shareholder, you should always be keen on Safaricom’s share price performance to know when to invest and make plans of selling shares in the future.
Receiving the shares
Upon completing the purchases, Safaricom will liaise with your bank to give you a hard copy with all details of your shares. The form will include the date of buying shares, the number of shares, and other information pertaining to the transactions.
Buying shares in Safaricom means you have something important to protect. You will therefore need to keep an eye on the performance of your shares.
For convenience, download the CDCS app to monitor the performance of your portfolio through the mobile app. You are now a shareholder in Safaricom, and this comes with the following benefits:
- Receiving Annual General Meetings email invitation held by Safaricom
- Eligibility to receive dividends every year
After receiving the shares, you can choose to invest by waiting for them to accumulate high amounts, then diversify to other areas of financial increments.
However, there’s a catch. Having more shares means that you will wield more influence in the company. As your pocket keeps increasing, try to increase the shares.
It also drastically increases the dividends you get and acts as proof of your financial ability when dealing with bank issues in case you want a loan.
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Buying Safaricom shares via Mpesa
You can buy Safaricom shares using your mobile phone through the Mpesa. Using the Paybill number 163163, use your name or the names of your group members as the account number.
Buying Safaricom shares via a bank account
As mentioned earlier, the bank account you use can be a trusted stockbroker. For Instance, if you are using an accredited bank such as The Cooperative Bank of Kenya, use the following details:
- Name: Safaricom Investment Cooperative
- Account number: 01120150100700
The branch will depend on your bank’s location, such as Westlands.
Using bonga points to purchase Safaricom shares
Bonga points can also be used to buy these shares. If you have more of these points, you will be good to go since one bonga point is equivalent to KSH 5. You can use very many participants in trading. They include;
- Capital from ABC
- Faida Investment Bank
- Suntra Investment Bank
- Sterling Capital
It also has several steps that are involved. Some are similar to buying Safaricom shares online, like using an app to log in. The bonga points need to be changed to shillings by being redeemed.
- Go to bonga points, that is*126#.
- Go to the menu and choose “pay via bonga points.”
- Click the Paybill
- Enter your business number.
- Use the Paybill number given by your broker and press ‘’
- Use the CDSC number as the account number, then press Ok. Copy it and press ‘Ok.’
Enter the amount you want to pay and click ‘send.’
Always remember that your bonga points may not be enough for payment and coverage of the transaction fee. Your estimations should be calculated well to make sure your point is sufficient.
Key points to take away
Buying Safaricom shares is a good way to grow your wealth. Open a CDCS account to buy shares using the bank, M-Pesa, or bonga points. Only use accredited brokers to ensure that your transactions are safe. Generally speaking, Safaricom is among the best businesses to invest as a shareholder.