It sounds too complicated to me! Nothing is too complicated if you’re willing to understand the process.
Allow me to take you through the process of opening a CDS account in Kenya. It may seem a bit more serious, but once we’re done with it you’ll get the hang of it.
First, let us answer the question what is a CDS Account and how does it work?
The acronym CDS stands for Central Depository System. It’s an electronic account that holds specific investment equities. (Shares, bonds, and treasury bills). Allowing one to bid government equities such as bonds and treasury bills.
Having this account enables you to invest in Kenya and take part in the Stock Exchange Trading.
How to open a CDS Account:
· Go to the Central Bank of Kenya (CBK) website and download the CDS specimen signature mandate card.
· Fill in the card in BLOCK LETTERS. It’s a requirement never to neglect this.
· Fill in your names as they appear on your Identity Card/Passport.
· No alterations will be accepted
· Upon filling it up do not disfigure or fold the card
· Submit you’re filled-in mandate card accompanied with a recent colored passport-sized photo. (Do this in person)
. As an account applicant, you will be required to sign your card in the presence of a designated CBK Officer.
· The photo should be duly certified by your local banker. By stamping on the reverse side of the photo.
· Make sure to avail your original identity/Passport/ Alien card on the day of submission (Copies of the same are retained by the bank)
· To confirm your bank details, two signatories from your local banker should append their signatures in the provided space on your mandate card
· Scan and mail your application details to ndo@centralbank.go.ke and thereafter post your physical mandate documents to:
The Director,
Financial Markets Department
Central Bank of Kenya
P.O. Box 60000-00200,
Nairobi, Kenya
Here are a few pointers to always remember when making your application
· This account can be opened by both individuals as a single applicant or joint applicants, and Corporates
· There is no cost incurred to open or maintain your CDS account with the Central Bank of Kenya.
· This service is available at Central Bank headquarters in Nairobi and branch offices in (Mombasa, Kisumu, and Eldoret).
. An application can be done through CBK currency centers in (Nyeri, Meru, Nakuru, and Kisii).
· It will cost you to open and maintain the same account through an authorized agent.
· This account is available to all persons interested in trading in Kenya
· You must have an account with any of the domicile bankers in the country
· The process of the application takes place within seven working days from the date of submission.
· Kenyans in the diaspora are eligible to apply for this account as long as they have an account with local banks.
· Foreign investors who don’t have a local bank account can apply through the authorized agents.
Who are the authorized Agents?
· Commercial Banks
· Investment Banks
· Stockbrokers
· Investment Advisors
Authorized agents are allowed to conduct the process of CDS account application on behalf of individuals and corporates.
Important to note is that any authorized agent (third parties) MUST be licensed to operate as such by both the Central Bank of Kenya and Capital Markets Authority (CPA).
Corporates allowed to apply for the CDS account include
· Limited Companies
· Co-operatives
· Insurance Companies
· Registered Societies
· State Corporation
· NGO’S
· Non-Financial Investment Organizations
(The process of opening a CDS account for the corporates can be found on the Central Bank of Kenya website).
You see how easy it was to open that CDS account! Now go ahead and start investing in those bonds and shares that are calling your name!
