How To Buy Safaricom Shares To Make More Money

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You will need to have a brokerage account with a licensed securities dealer in order to buy and sell shares on the exchange.

You can buy the shares through a stockbroker or through the Nairobi Securities Exchange.

What Is Safaricom?

Safaricom is the dominant telecommunications company in Kenya with a market capitalization of over $10 billion. 

The company has a dominant market share in Kenya’s mobile, broadband, and enterprise services markets.

What Are Safaricom Shares And What Do They Represent?

Safaricom is a Kenyan telecommunications company that was founded in 1997.

It is the largest mobile telecommunications company in Kenya, with a market share of over 70%.

Safaricom shares are publicly traded on the Nairobi Securities Exchange.

They represent an ownership stake in Safaricom and provide shareholders with a share of the company’s profits.

What Is The Nairobi Securities Exchange (NSE)?

The Nairobi Securities Exchange is also a member of the East African Securities Exchanges Association.

It is a regional organization that promotes the development of securities markets in East Africa.

The Nairobi Securities Exchange is the only regulated exchange for the purchase and sale of securities in Kenya. 

Read also: Cabbage farming in Kenya

Who Is a Stockbroker?

A stockbroker is an individual or a company that charges a commission to execute buy and sell orders submitted by an investor. 

To become a registered stockbroker in Kenya, one must have a license from the Capital Markets Authority (CMA).  

The CMA is a statutory body established in 1989 under the Capital Markets Act. 

This authority is charged with the responsibility of regulating all non-bank financial institutions in Kenya.

A Father’s Advice On Safaricom Share Investment

The following are some key things to consider before buying Safaricom shares:

1. The company’s financial performance

It is important to consider the company’s financial performance before investing in its shares. 

Safaricom has been posting strong financial results in recent years, with revenue and profit growth.

2. The company’s competitive position

Safaricom is the dominant player in the Kenyan telecommunications market, with a market share of over 70%. 

This gives the company a strong competitive position in the market.

3. The company’s dividend policy

Safaricom has a strong dividend policy, with a dividend payout ratio of over 50%. 

This means that the company is likely to continue paying high dividends to shareholders in the future.

4. The company’s future growth prospects 

Safaricom is expected to continue posting strong growth in the future, due to its strong competitive position and robust financial performance. 

This makes the company a good investment prospect for the long term.

How To Buy Safaricom Shares In KenyaOptions Available

There are several ways of buying Safaricom shares. Here is how you can buy the shares:

1. How To Buy Safaricom Shares Via a Stockbroker

Kenya has a number of licensed stockbrokers who offer online trading services. 

The following are some of the licensed stockbrokers in Kenya:

  • Standard Investment Bank
  • NCBA Investment Bank
  • AIB-AXYS Africa Ltd
  • Genghis Capital Ltd 
  • Kingdom Securities Limited
  • KCB Capital Group
  • ABC Bank Limited

Once you have selected a broker, you will need to open an account and complete the required paperwork.

Deposit money into your account with the stockbroker. 

The minimum amount required will vary depending on the broker, but will typically be around KES 1,000.

The Nairobi Securities Exchange (NSE) is the only licensed securities exchange in Kenya. 

It is a self-regulatory organization that was established in 1996. 

The NSE is a member of the World Federation of Exchanges (WFE) and the African Securities Exchanges Association (ASEA).

The NSE lists the following securities:

  • equities
  • corporate bonds
  • government bonds
  • treasury bills
  • commercial papers
  • mutual funds
  • exchange-traded funds

To buy the shares, you will need to open an account with a stockbroker that is licensed to trade on the NSE. 

Complete the stockbroker’s purchase order form. This will include your name, address, and the number of shares you want to buy.

Once you have opened an account with a stockbroker, you will have to deposit money into the account in order to purchase shares. 

After you have deposited money into your account, you can buy the shares. The minimum order is 100 shares.

Simply enter the number of shares you want to purchase and the price per share, and the broker will complete the transaction for you.

After the order is placed, it is important to monitor the account to ensure the order is fulfilled. 

If the order is not fulfilled, it is important to reach out to the broker to inquire about the order.

Once the purchase order is complete, the stockbroker will give you an invoice with the amount you need to pay. 

You will then receive your Safaricom shares. 

The stockbroker will send you a certificate of ownership once the shares have been successfully transferred into your account.

2. How To Buy Safaricom Shares Via a Bank

To buy the shares, you will need to approach your bank and request a form to invest in listed companies. 

Once you have the form, you will need to fill in your personal details, the amount you wish to invest, and the reason for your investment.

Once the form is complete, you will need to attach copies of your national ID, passport, or driver’s license and proof of address. 

You’ll need to pay through the account number 01120150100700 under the account name Safaricom Investment Cooperative (SIC), Westlands branch.

At the moment, Safaricom allows you to buy its shares via Cooperative Bank.

Your bank will then process your application and, if approved, will purchase the shares on your behalf.

3. How To Buy Safaricom Shares Via Mpesa

To buy the shares, you will need to have a Mpesa account. Once you have a Mpesa account, follow these steps:

1. Go to MPESA Menu

2. Select Lipa Na MPESA

3. Select Paybill

4. Enter a Business number: 891300

5. Enter Account number: Your Safaricom Share account number

6. Enter Amount: The amount you wish to purchase Safaricom shares

7. Enter your M-PESA PIN and send

You can also buy Safaricom shares from the Nairobi Securities Exchange (NSE). 

4. How To Buy Safaricom Shares With Bonga Points

To buy Safaricom shares using Bonga points, you need to place the order via the app or the form and wait. You’ll have to redeem the Bonga points first.

  1. The USSD Option

Simply follow the steps below to redeem your Bonga points:

  • Dial *126# (Or use mySafaricom App, under Balances, Lipa na Bonga)
  • Go to Lipa Na Bonga Sub-menu on USSD Code
  • Select PayBill Option
  • Key in the Trading Participant’s PayBill Number
  • Then enter your CDSC (Central Depository and Settlement Corporation) account number
  • Then enter the amount in KES they want to deposit to their account number.

Customers will redeem their points at a rate of KES 1 for every 5 points. So for example KES 4000 will require 20,000 Bonga Points.

  1. The MySafaricom App Option

You can also use Bonga points to buy Safaricom shares using MySafaricom App.

Take the following steps:

  • Download MySafaricom App on your mobile phone
  • Launch the app and use your mobile number to receive a one-time password (OTP) via SMS
  • Use the OPT to log into your account
  • Select Bonga on the app
  • Pick Lipa Na Bonga Points
  • Choose the pay bill number and enter your broker’s pay bill number
  • Use your CDSC account number under the account number section
  • Specify the amount you want to credit into your CDSC account
  • Input your PIN and continue with the subsequent steps

5. How To Buy Safaricom Shares Online

To buy the shares online, you will need to open an account with a brokerage firm that offers online trading. 

Once you have registered for an account, you will be able to log in and place your order.

The process of buying Safaricom shares online in Kenya is very simple. 

First, you need to find a reputable online broker that offers shares in Safaricom. 

Then, you need to create an account with the broker and deposit funds into the account. 

After that, you can place an order to buy shares in Safaricom. 

The broker will then purchase shares in Safaricom on your behalf and deposit them into your account. 

Steps:

  1. Sign In to your Online shares trading up
  2. Fund the account by adding cash via MPESA 
  3. Click buy Shares
  4. Select Safaricom shares
  5. Enter the quantity needed and set the price limit, if necessary.
  6. Confirm the order.
  7. Then wait for 48 hours for the order to be executed by the broker who owns the online trading platform.

How To Open a CDS Account

There are three options. Here are the options:

Option 1 You Can Consider

To open CDs account, simply take the following steps:

  1. Go to the Central Bank of Kenya website to download the mandate card for individual investors and the Mandate card (Corporate) for corporate investors
  2. Print out the appropriate mandate card and fill out your details.
  3. Attach a recently taken colored passport-sized photograph and a copy of the investor’s Kenyan National Identity Card (I.D.) or Passport. The documents should be certified by your local banks.
  4. Get the filled-in CDS mandate card certified by your Commercial bank.
  5. Commercial investor banks will certify the completed CDS mandate card by way of signing the bank’s stamp and signatures of two of their authorized signatories on the provided spaces.
  6. Scan the completed CDS mandate card and email it to ndo@centralbank.go.ke
  7. Send it by post to: The Director, Financial Markets Department P.O. Box 60000- 00200, Nairobi, Kenya
  8. When the CDS account has been opened, the investor will be notified of the CDS account number through email as provided on the CDS mandate card submitted to CBK. Then a formal letter of notification will follow.

Option 2 You Can Consider

You can also use a shares-trading app like AIB Digi Trader App, you can sign up for your CDSC account, check your trading statements, and monitor the Nairobi Stock Exchange (NSE) prices.

This mobile app is useful if you intend to buy and sell Safaricom shares online. The best part is that you can use it to trade in other stocks at the NSE and not just Safaricom shares.

Option 3 You Can Consider

Alternatively, you may also choose a USSD service.

Procedure:

  1. Press USSD *543# ( this USSD code takes you to the AIB-AXYS capital platform.
  2. Next, click open new trading account.”

How To Sell Safaricom Shares In Kenya

 The first step in selling Safaricom shares is to open an account with a stockbroker. 

Once the account is open, the shareholder will need to provide the stockbroker with their shareholder identification number, which is located on their share certificate. 

The shareholder will also need to provide the stockbroker with the number of shares they wish to sell.

The stockbroker will then place an order to sell the shares on the shareholder’s behalf. 

Once the order is placed, the shareholder will need to wait for the stockbroker to find a buyer for the shares. 

Once the shares are sold, the stockbroker will send the shareholder the proceeds from the sale.

The Benefits Of Owning Safaricom Shares

Some of the benefits of owning Safaricom shares include:

1. Dividends: Safaricom pays out dividends to shareholders on a quarterly basis. 

The amount of the dividend payout varies, but it is typically a good way to earn income from your investment.

2. Price appreciation: The price of Safaricom shares has historically increased over time. 

This means that if you hold your shares for a long period of time, you may see a significant return on your investment.

3. Liquidity: Safaricom shares are highly liquid, meaning they can be easily sold on the open market. 

This makes them a desirable investment for many people.

4. Voting rights: As a shareholder, you are entitled to vote on important company decisions. 

This gives you a say in how Safaricom is run and can help you influence its future.

5. Capital gains: If you sell your shares for more than you paid for them, you will make a capital gain. 

This is a profit made on the sale of an asset.

6. Ownership: By owning Safaricom shares, you become an owner of the company. 

This gives you a stake in its future and a voice in how it is run.

Risks Of Owning Safaricom Shares

 There are a few risks associated with owning Safaricom shares. 

These risks include the possibility that the company’s profits may decline, that it may be unable to continue growing its customer base, or that it may be unable to keep up with advancements in technology. 

Additionally, Safaricom is dependent on the success of the Kenyan economy, which may not be as strong in the future as it is today.

Why Safaricom Shares Are Worth Buying

There are several reasons and here are some of those reasons:

1. The company’s financial stability and performance

 Safaricom is one of the most profitable and stable companies in Kenya. 

 It has a strong balance sheet with a low debt-to-equity ratio. 

 The company has also been consistently profitable over the years, and its stock is one of the most liquid on the Nairobi Securities Exchange.

2. The company’s competitive position

 Safaricom is the dominant player in the Kenyan telecommunications market. 

 It has a large market share and enjoys a first-mover advantage. 

 This gives the company a strong competitive position in the market.

 3. The company’s future prospects

 Safaricom is expected to continue enjoying strong growth in the coming years. 

 This is driven by the company’s expanding customer base, rising data traffic, and growing demand for mobile financial services.

How To Become a Member of Safaricom Investment Co-operative

They offer two types of membership namely Individual Membership and Group Membership

1. Individual Membership

  • An individual can become a member upon payment of a non-refundable fee of kshs.10,000/= and for a minimum of 500 shares of ksh.52.5/= each, or may be determined by the General Meeting from time to time.
  • The total membership fee is ksh.36,250/=
  • The total membership fee is ksh.36,250/=

2. Group membership

  • This is achieved upon payment of a non-refundable fee of kshs.15,000/= and for a minimum of 1,000 shares of ksh.52.5/= each, or may be determined by the General Meeting from time to time.
  • The total membership fee is ksh.67,500/=.

How Do I Pay For Membership?

To pay for a membership, use the following bank details:

  • Bank: Cooperative Bank of Kenya
  • Branch: Westlands
  • Bank Account: 01120150100700
  • Name: Safaricom Investment Cooperative

Alternatively, use Mpesa:

  • Paybill number:163163
  • Account number: (client’s membership number) or the member’s name.
  • A monthly contribution of ksh.15,000/=.

How Do I Login To The Portal?

  • Log into our website www.sic.co.ke
  • Click member login
  • Click does not have an account
  • Key in your membership as (MMBR0****)
  • Password sent to your phone
  • Click log back, key in your member number and the password
  • Change your password to the one you prefer and will remember.

List Of Licensed Insurance Brokers In Kenya 

Here are the top registered stockbrokers in Kenya:

  • KCB Capital Group
  • ABC Bank Limited
  • Standard Investment Bank
  • NCBA Investment Bank
  • AIB-AXYS Africa Ltd
  • Genghis Capital Ltd
  • Kingdom Securities Limited

How Much Are Safaricom Shares?

The price of Safaricom shares varies depending on the market conditions and the company’s performance. 

Currently, the price of Safaricom shares is KES 23.00 per share.

How Can I Buy Safaricom Shares? – Key Takeaways

To buy Safaricom shares, you will need to open an account with a licensed stockbroker. 

Once you have opened an account, you can place an order to buy shares.

There are a number of factors to consider when buying shares, including the current share price, the company’s financial performance, and your investment goals.

It is important to do your research before investing in any company. 

Read Safaricom’s latest financial reports and news articles to get a better understanding of the company’s performance and prospects.

Executive Summary

Usually, you need to choose a registered stockbroker.

After choosing a reputable broker, the next step is to open an account with a broker. 

There are a number of brokers who offer services in Kenya, but some of the most popular include:

1. Stanbic Bank

2. CFC Stanbic

3. KCB

4. Equity

5. Co-operative Bank

Once you have chosen a broker, complete the required account opening documentation and provide the necessary supporting documents. 

This will typically include your ID and proof of address.

Deposit Funds

Once your account is open, you will need to deposit funds in order to purchase shares. 

The minimum deposit amount will vary depending on the broker but is typically around KES 1,000.

Place a Buy Order

Once your account is funded and you have found the Safaricom share you want to purchase, you can place a buy order. 

The price you pay will be based on the current market price of the share, as well as the broker’s commission.

Receive Shares

Once the buy order is complete, the shares will be credited to your account and you will be able to begin trading them.

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