Kenya · Nairobi Securities Exchange
Kenya Stocks & the NSE
Buying shares on the Nairobi Securities Exchange is more open — and more tax-friendly — than most people realise. Here is how to start, what it costs, and the rules for foreign and diaspora investors.
- Exchange
- Nairobi Securities Exchange (NSE)
- Where to buy
- A licensed NSE stockbroker
- Account
- A CDS account, held at the CDSC
- Foreign ownership
- Open to 100% since 2015
- Dividends tax
- 5% residents · 15% non-residents
- Capital gains
- NSE-listed shares are exempt
01The Nairobi Securities Exchange, in short
The NSE is Kenya's stock market, where you can buy part-ownership of listed companies — banks, telcos, manufacturers and more — and share in their profits through dividends and price growth. Shares are held electronically in a CDS account in your name.
For the live prices and the list of companies, see the Nairobi Securities Exchange.
02How to buy shares in Kenya
- 1
Choose a licensed stockbroker
Pick an NSE member firm — a stockbroker or investment bank. Foreign and diaspora investors usually choose one that also offers custody.
- 2
Open a CDS account
Provide your KRA PIN, ID or passport and bank details. This account — held at the CDSC — holds your shares electronically, and is separate from the Central Bank account used for government securities.
Foreign or diaspora investor? See below ↓ - 3
Fund your trading account
Transfer money from your Kenyan-shilling bank account to your broker, ready to trade.
- 4
Place an order
Tell your broker, or use their trading app, which shares to buy — at the market price or a limit you set.
- 5
Settle and hold
Once your order is matched the shares are credited to your CDS account, and any dividends are paid into your bank account.
Often unclear — here's the answer
For foreign & diaspora investors
- Foreign ownership is open. Kenya scrapped the 75% foreign-ownership ceiling on listed firms in 2015, so non-residents can hold up to 100% of most NSE-listed companies — a few keep sector-specific caps.
- The KRA PIN is the real hurdle. Every investor needs a KRA PIN (Kenya's tax ID). A non-resident registers on iTax but must appoint a Kenya-resident tax representative — a licensed local tax agent — to obtain and hold it; reckon on a few weeks. Diaspora Kenyans can usually register with their national ID instead.
- You trade through a licensed stockbroker. Open a CDS account via an NSE member firm (held at the CDSC — separate from the Central Bank account used for government securities) and fund it from a KES account.
- NSE gains are CGT-free. Capital gains on securities listed on the NSE are exempt from Kenya’s capital gains tax. The 15% CGT applies to unlisted shares and property, not your ordinary NSE trades.
- Dividends: 15% for non-residents. Withholding tax on dividends is 5% for residents and 15% for non-residents — often reduced under a double-tax treaty.
- Profits repatriate freely. With no exchange controls, dividends and sale proceeds convert back to your currency — leaving you with currency risk, not capital controls.
Rules and rates change — verify against the CBK, NSE and KRA before you commit. This is information, not tax or investment advice.
03Dividends & tax
Two things shape what you keep from a Kenyan share:
- Dividends are taxed by withholding before they reach you — 5% for residents, 15% for non-residents (a tax treaty may lower the non-resident rate).
- Capital gains on NSE-listed shares are exempt from Kenya's capital gains tax, so you keep the full gain when you sell.
- Each trade carries a brokerage commission plus small NSE, CMA and CDSC levies — a fraction of a percent in total.
04Common questions
How do I start buying shares in Kenya?
Open a CDS account through a licensed NSE stockbroker, fund it from your bank account, and place a buy order. The shares are then held electronically in your CDS account.
Do I pay capital gains tax on NSE shares?
No. Gains on securities listed on the Nairobi Securities Exchange are exempt from Kenya's capital gains tax, for residents and non-residents alike. The 15% CGT applies to unlisted shares and property, not ordinary NSE trades.
How are dividends from Kenyan shares taxed?
Withholding tax is deducted before the dividend reaches you: 5% for residents and 15% for non-residents. A double-tax treaty between Kenya and your country may reduce the non-resident rate.
Can foreigners buy shares on the NSE?
Yes. Kenya removed the 75% foreign-ownership ceiling on listed companies in 2015, so non-residents can hold up to 100% of most NSE-listed firms — a few keep sector-specific caps.
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