Thinking of starting out trading at the Nairobi Securities Exchange? Well, in this post I cite out the list of stock brokers in Kenya that have been duly licensed to carry out brokerage services for investors at the Exchange. Feel free to contact me for any clarity or recommendations.
First things first.
The world of stock trading can either be lucrative or unrewarding for novice and experienced investors alike. Some of the factors that dictate the success of a trader include the risk tolerance and management practices, the trading platforms and strategies used and the choice of the stock brokers used. Unlike in the most developed countries where there are trillions of transactions taking place daily, the NSE turnover is still growing and as such its transactions may be susceptible to manipulation by unscrupulous market participants.
Stock Brokers in Kenya and their Roles in the NSE
Stock brokers in Kenya have to be duly licensed by the NSE and overseen by the Capital Market Authority. The role of stock brokers in Kenya have evolved over the years. Traditionally, the stock brokers played mainly middleman duties between the buyers and sellers and get commissions in return. A stockbroker will work with a range of clients, from individuals to large companies. Their role is to manage and look after their clients’ investments, providing investment advice and recommendations, monitor both local and foreign market performances.
Buying and Selling Stocks
Stock brokers in Kenya are licensed to purchase and sell shares on behalf of the company. For starters, publicly traded companies at the NSE give portions of ownership to investors in form of shares. In order to purchase or sell shares, one must open an account with the desired broker. The primary role of any stock broker is to act as an intermediary between sellers and buyers of shares.
Most brokers these days are well capitalized. With their connections to top banking institutions, they are able provide margin financing for their clients. In fact, the concept of financial leveraging where an investor only needs to have a portion of the total capital needed for investment and the broker tops the balance, of course at agreed terms and conditions.
Research and Advice
Unlike in the past where brokers did not offer any advisory services. They have full time analysts who look at the micro and macro economic trends and give daily tips and advice. The brokers also use both fundamental and technical tools for looking at the wider picture and offering the appropriate advice.
Personalized Management Services
Many brokers have resorted to improving customer experience by assigning relationship managers to investors. The key role of the manager is to provide one on one advice to the client depending on the type of service needed. They conduct researches and offer guidance on the stocks to watch put for and also a timeline to make transactions. Additionally, many brokers have portfolio managers for investors who prefer to have a diversity of stocks under their account.
Characteristics of Good Stock Brokers in Kenya
Before wading into the murky waters of stock trading, an investor must carry out due diligence and research on the chosen Kenyan stock broker. A good broker will portray most of the following qualities discussed below. Many stock brokers will offer the roles discussed above at reasonable prices.
A good brokers must also be loyal to the clients and provide services as agreed upon. Transparency must be the predominant language when it comes to monetary transactions. This dictates that brokers must have fair dealings, offer full disclosure statements, act in good faith and offer suitable recommendations.
Key Stock Brokers in Kenya
Below is a list of stock brokers in Kenya commonly referred to as the market participants. Remember that the choice a stock broker can either make or break your bank literally (Pun ♥♥ Intended):
The company was founded in 1954 as a partnership of stockbrokers called Hickman & Grey. In the same year, the Nairobi Stock Exchange (NSE) was established and it became one of the six founding members (now called the Nairobi Securities Exchange). Through their brokerage division, the company executes transactions on behalf of clients across the equity and fixed income capital markets in the East African Region. The firm also provide transaction execution services for non-listed securities through over-the-counter (OTC) trading arm.
Francis Drummond and Company Limited (FD) is a specialized stock brokerage service provider. The company is a private limited liability company incorporated in accordance with the Companies Act in Kenya and is licensed to trade by the Capital Markets Authority. FD is a pioneer Member of the Nairobi Securities Exchange and has been in existence since 1949, hence the reference “Broker No. 1”. The firm is a Member of the Kenya Association of Stockbrokers and Investment Banks (KASIB), a trading participant at Nairobi Securities Exchange (NSE) and an authorized agent of the Central Depository & Settlement Corporation Limited (CDSC).
FD specializes in brokering (buying and selling) of securities of different companies listed on the Nairobi Securities Exchange.The main types of products/services on offer are:
- Fixed income securities: This entails trading in Government securities and corporate bonds
- Money market instruments such as Treasury Bills. These are short term investments of funds by individuals and/or corporate
- Offshore investments: This refers to investments undertaken outside an investor’s home country
All these services are offered to all types of investors comprising companies, institutions, groups and individual investors.
Suntra Investments Limited was incorporated on March 20th, 1990. On June 4th 1990, the company was granted license as an agent of the Nairobi Securities Exchange. The Company was admitted to the Nairobi Stock Exchange on 1st July 1994 and has since then moved quickly to establish itself as one of the rapidly developing brokerage firms in the country. Suntra Stocks Ltd was licensed as an Investment Bank on 1st July 2004.
Suntra Investments Ltd. has in the past been involved in many assignments as a leading Financial Adviser and Sponsoring Stockbroker in many Public Offerings, Rights Issues and Private Placement of Shares and Bonds by the Government and various Companies. The company assists clients to build balanced investment portfolios with the objective of optimizing returns with as low exposure to risk as possible. In diversifying investments, investors may wish to invest some funds in shares and the rest in other money and capital market instruments like bonds.
Old Mutual was formed in 1845 in South Africa as a mutual insurance company by John Fairbairn. In 1930, Old Mutual entered the Kenya with a branch is opened in Nairobi on Hartridge Street (now Kimathi Street), with Mr. C. B. Barton as Branch Manager.
The company offers financial solutions for insurance, investment, savings and banking. The business is driven by two key brands namely: UAP Old Mutual with a focus on Insurance and Investment Business and Faulu Bank which focuses on Banking Business.
The company is part of the Stanbic Bank also trading as Standard Bank. Headquartered in South Africa, Standard Bank was established in 1862 and has been listed on the Johannesburg Stock Exchange Limited (JSE) since 1970. The group employs 48,000 people worldwide and has a market capitalization of approximately USD 21 billion and total assets of approximately USD 172 billion as at 30 June 2011.
The long-term credit ratings for the Standard Bank of South Africa, the single largest operating entity within the Standard Bank Group, are Moody’s A3, Standard & Poor’s BBBpi and Fitch Ratings BBB+.
The Group’s international franchise is focussed on developing markets and natural resources. Its activities concentrate on the provision of banking services connected with trade and international business flows with an emerging market and resources emphasis. These are delivered through a global network of offices located throughout the world’s major financial centres and key developing economies. Currently the Group’s stockbroking presence covers South Africa, USA, United Kingdom, Russia, Turkey, Kenya and Nigeria.
Kingdom Securities Limited (KSL) is a subsidiary of the Co-operative Bank of Kenya Limited, the third largest bank in terms of asset base in Kenya. The bank acquired 60% controlling interest in Bob Mathews and is now trading as Kingdom Securities Limited (KSL). It formally started operations on June 11th 2009 and is supported by a strong distribution network of 140 Co-op Bank branches nationwide. KSL is licensed by the Capital Markets Authority (CMA) under license no 03/09.
As a licensee of the NSE, KSL assists firms seeking to raise capital through the stock market by acting as placement and sales agents. It also assists organizations (both Government and Corporate) to raise debt capital by acting as placement agents; and in their role as sponsoring brokers for those seeking to raise funds through sale of shares.
AIB Capital Ltd (formerly Afrika Investment Bank) is a Kenyan limited company, licensed by the Capital Market Authority and is engaged in the business of stock brokerage, bond dealing and corporate finance advisory. AIB Capital leverages talent and networks to service businesses and investors looking to capitalize on the East African growth story and its vibrant financial sector.
As a registered Central Depository Agent for the Central Depository and Settlement Corporation AIB assists its clients in accounts opening, share transfers, security immobilization and pledges of shares among others. Discretionary Portfolio Management (DPM) services are also provided to High Net Worth Individuals through a team of relationship managers who make investment decisions on behalf of the client after establishing the client’s risk profile, investment objectives and tax considerations.
As a licensed trading member of the Nairobi Securities Exchange, AIB has built internal capacity aimed at capitalizing on the opportunities available in the Kenyan derivatives market once it is operationalized.
ABC Capital is one of the leading stock brokerage company in Kenya offering a flexible range of world class wealth management services to investors in the East Africa region. As a member of the Nairobi Securities Exchange (NSE) since inception in 1954, the firm has shared a rich heritage in the fortunes of one of Africa’s leading stock markets.
In 2008, ABC Capital was acquired by African Banking Corporation Limited (ABC Bank), an award-winning commercial bank that offers a variety of financial solutions tailored to meet its customers’ needs. Thus ABC Capital immediately benefited from ABC Bank’s professionalism and key competencies of relationship management and expert approach in terms of its operations embodied in the ISO 9001:2008 certification awarded to the bank in January 2008.
Sterling Capital Limited is a member of the Nairobi Stock Exchange that offers various securities related services such as corporate advisory, global trading, portfolio research and innovative research.
Apexafrica Capital Ltd (Apex) was licensed as HAK Securities Ltd, on 27th June 1994 and has since become one of the premier brokerage houses operational on the Nairobi Securities Exchange (NSE). The range of our services includes: Stockbroking (for securities listed on the NSE), portfolio management, research and corporate finance. In 2015, Apex became part of AXYS Group (based in Mauritius) opening its doors to a new transformation.
The AXYS story began back in 1992 as the first fund management company set up in Mauritius. Over the years the company has consolidated its operations worldwide to include Asset Management, Stockbroking, Trust & Corporate services, Asset financing, Deposit taking and Corporate Advisory.
Founded as Faida Securities Limited, (a Stock Brokerage Firm) in 1995, Faida was awarded an Investment Banking license in December 2007. FIB has an extensive network in the region with a subsidiary recently incorporated in Rwanda, with plans to set up elsewhere in Sub-Saharan Africa.
FIB was also extensively involved in the introduction of the Automated Trading System (ATS) and the Wide Area Network (WAN) by the Nairobi Securities Exchange (NSE), where the Chairman, Bob Karina was the chairman of both the ATS and WAN Implementation Committees.
Faida Investment Bank Ltd is a limited company incorporated in Kenya on 11th November 1994 in accordance with the Companies Act (Registration No. 44170) and licensed as an Investment Bank under the Capital Markets Authority (Licensing Requirements) (General) Regulations, 2002. Faida Investment Banks’ head office is located at Crawford Business Park, Ground Floor, State House Road and has a Professional Indemnity Cover for all our clients, secured by AIG Insurance Kenya.
The directors of Faida Investment Bank are Bob Karina (Chairman), Dennis Waweru (Non-Executive Director), Lucas Otieno (Managing Director), Mercy Kamau (Independent Director), Rina Hicks (Operations Director) and David Mataen (Corporate Finance & Research Director).
NIC Securities Limited (“NICS”) is a brokerage firm licensed by the Capital Markets Authority (“CMA”).
NICS is a limited liability company registered in Kenya under the Companies Act (Cap 486) of the Laws of Kenya. NIC Securities is owned by NIC Capital Limited, a fully owned subsidiary of NIC Bank since 2007.
NICS looks to provide investors with a secure platform from which to participate in a diversified array of investments in the equities and bond markets, backed by solid advice from our research team, to enable investors meet their return objectives. NICS has extensive experience in the operations and regulatory framework of the Nairobi Securities Exchange, the Capital Markets and act as an authorized agent of the Central Depository and Settlement Corporation.
Standard Investment Bank Ltd is a leading Kenyan financial services firm providing investment banking, securities trading and investment management services to a substantial and diversified client base that includes government, fund managers, corporations, financial institutions, high-net-worth individuals and retail investors. Founded in 1994, the firm has its offices in Nairobi and maintains agency relationships with firms in Uganda and Tanzania.
Kestrel Capital (EA) Limited is a leading independent investment bank licensed by the Kenya Capital Markets Authority (CMA) and is a member of the Nairobi Securities Exchange (NSE). It is one of the largest stock brokers and bond traders at the exchange and provides investment vehicles for high net worth individuals with a strong focus on market and company research. Other than stock brokering and bond trading, Kestrel Capital (EA) Limited also provides corporate advisory services, commercial paper placing, IPOs and NSE listings. The firm also offers fairness opinions and valuations, investment advisory, private placements of equity and debt and company and market research services.
African Alliance is an investment banking group operating in Africa that provides local and on-the-ground investment banking services across the African continent. Since 1992, African Alliance has built a substantial infrastructure in terms of offices and professional teams throughout the continent to meet the investment banking needs of clients. These include national governments, municipalities, parastatals, pension funds and large to medium-sized public and private companies. Some of the services offered are geared towards
- Asset management
- Corporate finance
- Private Equity
- Third-party administration
Renaissance Capital is a leading emerging and frontier markets investment bank, providing access to over 50 markets across the globe with operations in Africa, Central and Eastern Europe, North America, and the Middle East.
Founded in 1995, Renaissance Capital is a leading independent investment bank and has built one of the largest Frontier and EEMEA distribution and execution platforms in the world. The Firm’s unique on-the-ground footprint, with offices in Lagos, London, Moscow, New York, Johannesburg, Cape Town, Nairobi, Cairo, Nicosia and Dubai, provides its clients with an unrivaled offering, serving as a gateway to emerging and frontier markets for international investors.
The Firm has market-leading positions in each of its core businesses: Equity and Debt Capital Markets, M&A, Global Markets – including Equity & Equity derivatives, Fixed Income, FX and IR derivatives, Commodities, REPO and Financing, as well as Research and Prime Brokerage. Renaissance Capital was ranked the No.1 Frontier Markets brokerage firm in the Extel Survey in 2016 and 2017.
Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:
- Securities(Equity/Debt) Trading
- Wealth Management services
- Investment Advisory & Management via the GenCap Unit Trusts
- Corporate Finance & Transaction Advisory services
CBA Capital is one of Kenya’s leading investment banking service providers with a range of corporate finance solutions designed specifically for medium to large organizations.
CBA Capital is the wholly owned investment banking subsidiary of Commercial Bank of Africa Limited. The firm has a long history in financial advisory services, offering a dynamic range of investment banking solutions and currently provide governments, institutions and corporates with expert advice on corporate finance. With a team of highly competent, knowledgeable and experienced professionals and a network of global partners and investors, the firm aims to add massive value through customized financial solutions.
This is one of the arms of Equity Group Holdings Limited. On 31st December, 2014, the Group finalized an internal restructuring that culminated in its conversion into a non-operating holding company, Equity Group Holdings Limited (EGHL) in order to further meet its objectives. The Bank arm was founded in 1984 as Equity Building Society (EBS).
The Bank has recorded various key milestones over the years. In 2004, it converted into a fully-fledged commercial bank, Equity Bank Limited (EBL). In 2006, the Bank was listed at the Nairobi Securities Exchange where it has become the largest Bank by market capitalization. The listing also attracted Helios, a strategic investor, to invest USD 185 million in 2007.
The Group’s transformation into a rapidly growing Pan-African banking group has been an inspiration to many. Over the years, the Group has built a social and economic brand and scaled up by providing financial services to the masses through a diversified distribution of its products and services.
KCB Capital Ltd. is a fully owned subsidiary of the KCB Group set up as the investment arm of the group so as to provide strategic and financial advice to meet the growing and dynamic needs of institutional and individual clients, as well as governments. The mission is providing unique investment strategies and products that maximize and protect both client and shareholder value through visionary management, execution excellence and strategic partnerships.
This firm operates under Barclays Bank of Kenya, a subsidiary of Barclays Africa Limited, is one of the top banks in Kenya. Our business units fall under Retail, Corporate, Treasury and Card Services with cross functional relationships to support the segments of local business and small to mid-sized enterprises (SME).
Barclays financial strength coupled with extensive local and international resources have positioned Barclays as the top provider of financial services in the market for the past several years. Moreover, Barclays consistent financial performance has built confidence in our leadership and management among our Bank’s shareholders, as well as the industry overall.
Barclays has operated in Kenya for 95 years, and currently have an extensive network of 119 branches and over 230 ATM’s countrywide. The bank’s network is supported by Internet and mobile banking channels plus a Customer Service Centre that operates 24 hours a day, 7 days a week.
Securities Africa delivers securities brokerage, corporate finance, research and data services to a diversified client base consisting of institutional asset management firms, multinational finance agencies, publicly-listed corporations, private enterprises, government agencies, banks and market practitioners throughout the region. By leveraging the experience and expertise of our financial service professionals, SAK Ltd has emerged as a key player in frontier market investing and presently offer the only full-service institutional Pan-African trading platform capable of executing across each of the continent’s 23 stock exchanges.
With a current footprint spanning eleven countries across four continents, EFG Hermes started in Egypt and has grown over 30 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track-record & a team of more than 2,900 talented employees, we provide a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity to the entire region.
EFG Hermes launched the NBFI Platform, EFG Hermes Finance, which will overlook activities in the non-banking finance field through EFG Hermes Leasing and Tanmeyah Microfinance. This comes in light of the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into frontier markets — which has seen the firm establish a physical presence in Pakistan, Kenya, Bangladesh & the United States.
It is one of he Leading Brokerage House across MENA with Expanded Presence into Frontier Markets. EFG Hermes Securities Brokerage is the leading brokerage house in the Arab world, with expanded coverage of more frontier emerging markets (FEM) across the globe. It serves the needs of both individual and institutional investors.
The above list of approved or accredited stock brokers in Kenya is a good way to kick start your education in the stock market. In order to make a bang for your buck, it is always wise to choose a broker who embodies professional ethics and integrity as their core values. As a follow up to this post, I will be doing specific posts on some of the brokers above. Feel free to contact me for any question and recommendation.
PS: Trading securities bear risks of losing money. This is only a list post for educational purposes and should not be used as an investment advice. Read more about NSE and its operations on their website.