How to Open a CDS Account in Kenya

If you wish to invest in government securities or buy shares, you need to open a CDS account. There are various ways you can open a CDS account in Kenya. You can open one through the Central Bank of Kenya, commercial banks, or third parties like stockbrokers. An individual or an entity like a company can open a CDS account.

What is a CDS Account?

A Central Depository System (CDS) account is an electronic account that is used to hold and facilitate the exchange of shares, or government securities like bonds. A CDS account acts as a holding or a trading account. It is mandatory to have a CDS account if you wish to trade in Government securities in Kenya.

Requirements for Opening CDS account in Kenya

You need to meet the following requirements for opening a CDS account.

You must be 18 years or above
Two colored passport sized photographs
Original copy of ID or passport
A duly filled and signed CDS 1 form by two bank signatories. It acts as evidence that you have a bank account
In the case of a company, a certificate of registration
In the case of a company, copies of directors’ national IDs or passports and photos

Cost of Opening a CDS Account in Kenya

It’s free to open and maintain a CDS account through the Central Bank of Kenya. However, you may be required to pay a fee to open and maintain a CDS account if you use third parties like stockbrokers.

You can open a CDS account as an individual or a joint group. A CDS account can have an individual’s name or that of an entity like a bank or a company.

How to Open a CDS Account in Kenya

You can open a CDS account through the Central Bank of Kenya, Commercial Bank, or third parties like stock brokers.

How to Open a CDS Account with Central Bank of Kenya

To open a CDS account through the Central Bank of Kenya, follow the following simple steps.

Visit any of the Central Bank of Kenya branches across the country.
Request for a CDS account specimen signature mandate card
Fill the signature mandate card in block letters. Do not fold it or make errors.
Make sure to write your names in the order they appear on your ID card
Submit the card to the CBK officer and sign it in his presence
Submit the required documents like copies of your ID, passport photos, and two signatories from your bank institution
The CBK officer will verify all your documents and certify them at the back
You will then need to wait for 7 business days so that you can have your CDS account

How to Open a Diaspora CDS Account in Kenya

If you are a Kenyan living outside the country, you can open a CDS account following these simple steps.

Visit the Central Bank of Kenya website
Select whether you are opening an individual or corporate CDS account
Print the mandate card and fill in your details
Attach a colored passport size photo and a copy of your ID or passport
Have the CDS mandate card certified by your commercial bank
Scan the completed CDS mandate card and send it to ndo@centralbank.go.ke
Send the physical mandate card and other attachments via post to Director, Financial Markets Departments, P.O Box 60000-00200, Nairobi.
Once your CDS account is opened, you will receive a notification through the email address you provided in the CDS mandate card. You will also receive a formal notification letter confirming your CDS account.

Summary of How to Open a CDS Account in Kenya

You need a CDS account to trade in government securities or trade in shares. You can open a CDS account in Kenya through the Central Bank of Kenya, commercial banks, or using third parties like stockbrokers. It is free to open and maintain a CDS account through the CBK. If you use third parties, you may require to pay a fee to open or maintain one.