That Safaricom is a profitable blue-chip company is an open secret. Shareholding in such a successive company with billions in profits is a prudent financial decision. Having a unit of ownership in this company in the name of shares entitles you to enjoy the profits and see your stock value skyrocket. However, this is only possible when you make purchases at a fair price and sell them at higher prices especially after profit and rise in stock value.
Alternatively, you will have to join Safaricom Sacco and enjoy dividends without the hassle of speculation of share value and cash in on a rise. In this article, we will explore all these options for buying Safaricom shares in Kenya.
- Approach a Capital Markets Authority licensed stock brokerage firm.
- Open a CDS account with the firm(mostly its free of charge) with the following documents:
- Present a copy of your PIN Certificate from the Kenya Revenue Authority,
- your national ID or passport,
- Original Certificate of Incorporation (For companies),
- Two recent passport size photos.
- The CDS account operates like a bank account which trades shares
- Identify the amount of Safaricom shares you want to trade, their price and mark your entry
- Deposit money to your CDS account with your stock broker
- Give written permission of the stocks to be purchased at a specific price
- Alternatively, you can make these purchases online with your broker’s assistance
- Remember that your purchase price should be equivalent to the real-time Safaricom Market price
- A successful purchase should reflect the shares on your CDS account
- There is a three day window period when you cannot trade your recently purchased shares regardless of the market movement (T+3 rules).
- Transaction fees are automatically credited to your account by your stockbroker
- Remember the minimum amount of shares that can be purchased is 100 as per NSE rules.
Safaricom Investment Cooperative
Safaricom Sacco is one avenue of having your cake and eating it too. This investment vehicle allows shareholders through the SACCO to have a stake in the company but still enjoy Safaricom dividends unlike in shareholding where you have to sell your stake to make a profit. This Sacco is open to membership of both Safaricom staff and non-members provided you fulfill the Sacco’s criteria.
The criteria include regular contributors and members with a shareholding of around 300 shares. In addition to this, there is the first come first serve allocation twice weekly. However, given the allocation is based on the seller’s lots. The pricing conforms to the floor and ceiling prices.
The Sacco offers various channels for making purchases either through banking or M-Pesa.
- Purchase of M-Pesa Shares using M-Pesa
- Go to your M-Pesa menu
- Select Lipan na M-Pesa
- Enter pay bill number 163163
- On your Account number enter either your name or Sacco Account number
- Send and press okay
- Wait for a confirmatory SMS from M-Pesa
Using Bank to purchase Safaricom Shares
Simply go to your nearest bank and fill the following on your bank deposit slip. Granted the affiliation with Cooperative bank it’s advisable to go to your nearest coop bank branch. Using a different bank may attract an extra interbank fee.
Name: Safaricom Investment Co-operative Bank: Cooperative Bank of Kenya Bank Account: 01120150100700 Branch: Westlands
If you are a potential Safaricom investor these are the few options you can use. However, given the complexities of shares, it is always advisable to consult a stock brokerage firm and proper research on the company.