Tuesday, August 23, 2005

Where to buy Shares

These are the results of an informal research survey on stock brokers. It is the by-products of three different queries on information; one from a friend who asked me where to buy shares, second from Omani who had asked me to compare the various stockbrokers and third was a request from Afromusing who had asked how one could buy NSE shares while living in the US.

One first needs to open a CDS account which is free; by filling and signing a CDS 1 form, and providing two passport size photographs and a copy of your ID/Passport. The CDS 1 form are available at all stockbrokers and can usually be mailed to applicants upon request.

Here are the survey results in reverse order:

E-mail not working
Ashbhu Securities Ltd. Finance House, 10th Floor, P.O. Box 41684 Nairobi Tel. 210178/212989 Fax. 210500 E-Mail: ashbhu@net2000ke.com

Nyaga Stockbrokers Ltd. Nation Centre, 12th Floor P.O. Box 41868 Nairobi Tel. 315628/9 Fax. 315630/315748 E-Mail: nyagastk@users.africaonline.co.ke

E-mail and web site not working
Suntra Investment Bank Ltd. Nation Centre, 10th Floor P.O. Box 74016 Nairobi Tel. 337220 Fax. 224327 E-Mail: info@suntrastocks.co.ke WEB: http://www.suntrastocks.co.ke

Francis Thuo & Partners Ltd. International Life House, 13th Floor P.O. Box 46524 Nairobi Tel. 226531/2/3 Fax. 228498 E-Mail: ftbrokers@wananchi.com WEB: http://www.ftbrokers.com

Kestrel Capital (Ea) Limited Hughes Building, 7th Floor P.O. Box 40005 Nairobi Tel. 251758 Fax. 243264 E-Mail: info@kestrelcapital.com WEB: http://www.kestrelcapital.com

No response to e-mail within 24 hours and web site not working
Discount Securities Ltd International House, 3rd Floor P.O. Box 42489 Nairobi Tel. 219552/38 Fax. 230987 E-Mail: discount@dsl.co.ke WEB: http://www.e-bsolutions.biz/discount

Solid Investment Securities Ltd Contrust House, 6th Floor P.O. Box 63046 Nairobi Tel. 244272/9 Fax. 244280 E-Mail: sisl@solidkenya.com http://www.solidkenya.com site under construction but not active

Standard Investment Bank Ltd. Hazina Towers, 17th Floor, P.O. Box 13714 Nairobi Tel. 220225/240296/227004 Fax. 240297 E-Mail:info@standardstocks.com WEB: http://www.standardstocks.com site under construction

No response to e-mail within 24 hours
Ngenye Kariuki & Co. Ltd: Travel (UTC) House, 5th Floor, P.O. Box 12185 Nairobi Tel. 224333/226250 Fax. 241825 E-Mail: ngenyekari@wananchi.com

Crossfield Securities Ltd IPS Building, 5th Floor , P.O. Box 34137 Nairobi Tel. 246036/245971 Fax. 245971 E-Mail: crossfield@wananchi.com

Reliable Securities Ltd. Standard Building, 3rd Floor P.O. Box 50338 Nairobi Tel. 241350/4/79 Fax. 241392 E-Mail: reliable@gt.co.ke

African Alliance Kenya Ltd Kenya Re Towers, Ground Floor, Upper Hill, P.O. Box 27639, 0506 Nairobi Tel. 2735013/2735154/2735138 Fax. 2731162 E-Mail: otienol@africanalliance.co.ke

Sterling Securities Ltd. Finance House, 10th Floor P.O. Box 45080, 00100 Nairobi
Tel. 213914/244077 Mobile: 0723153219/0734219146 Fax. 218261 E-Mail: info@sterlingstocks.com

CFC Financial Services - Stockbroking Division Corner House, Ground Floor P.O. Box 47198 - 00100 Nairobi Tel. 221452/3 Fax. 218813 E-Mail: cfcfs@cfcgroup.co.ke FYI: These are the brokers I use

Top Firms:

4. APEXAFRICA INVESTMENT BANK LTD
Rehani House, 4th Floor P.O. Box 43676,Nairobi Tel. 242170/220517 Fax. 215554
E-MAIL: invest@apexafrica.com 3 hours to respond to my e-mail
WEB: http://www.apexafrica.com site is a bit basic, and not updated much
Costs: 2.1% if transaction is worth less than 100,000 and 1.8% if above 100,000

3. DYER & BLAIR INVESTMENT BANK LTD
Loita House, 10th Floor P.O. Box 45396 Nairobi Tel. 227803/4/5 Fax. 218633
E-MAIL: admin@dyer.africaonline.co.ke 25 hours to respond to e-mail
WEB: http://www.dyerandblair.com Web site allows online account management, is up to date, but rather slow
Minimums: 100 shares per transaction
Commission: 2.1% for any deal less than 100,000 shillings and 1.8% for any transaction amount above that. Also charge revenue stamp duty of two shillings for every ten thousand shillings.

2. FAIDA SECURITIES LTD
Windsor House, 1st Floor P.O. Box 45236 Nairobi Tel. 243811/2/3 Fax. 243814
E-MAIL: faidastocks@wananchi.com 24 hours to respond to e-mail
WEB: http://www.faidastocks.com Have online account management and their web site is up to date
Minimums: 100 shares per transaction
Commission: 2.1% for transactions below Kshs100,000 and 1.8% for transactions above Kshs 100,000.

1. FRANCIS DRUMMOND & CO. LTD.
Hughes Building, 2nd Floor P.O. Box 45465, Nairobi Tel. 318690/318689 Fax. 223061
E-MAIL: info@francisdrummond.com e-mail response in 2 hours.
WEB:http://www.francisdrummond.com The web site is updated daily with company news and disclosures. They also have online account management features enabling clients to trade and manage their accounts through the web site, at no extra charge and many Kenyans in the diaspora are already using this service.
Minimums: starting trade is 100 shares for new clients
Commission: For purchases above 100,000 shillings, charges are 1.8% and below 100,000, charges are 2.1%.

63 comments:

kuoasan said...

I totally agree that the BEST is Francis Drummond. They are very good & the CEO is Robert Mathu who is a great guy.

In addition, they provide ADDITIONAL reserach to their clients as well as personalised services if requested.

I already use them after disappointments with other brokers who promise but do not deliver!

afromusing said...

Thanks for the info!

Anonymous said...

r u in nairobi?ill be home soon so hope to catch up

Anonymous said...

You info is totally helpful, I just started buying and selling early this year thru a new Sterling Stockbrokers and ave made some 85% return on my initial investment of 100K coz their traders ( Eric & Abdul) updated me almost on a daily basis on the market opportunities.

Anonymous said...

Hi,.
thanks for this research and info
no wonder i read you regularly
Thanks for all money making/saving tips....trees and all.

A

shiroh said...

That is useful insight .I have contemplated buyng through Suntra stocks until i heard it's rise is political i thnk i will try Francis Drummond.

bankelele said...

Kuoasan: I have got accees to the online features of FD and its quite good. One can make/edit trades, see account balances and current prices.

Afromusing: you're welcome

Anonymous:

- yes i'm in Nairobi
- I don't think Suntra is 'political.' They are a well known investment bank/ stockbroker, handled the KCB rights issue well and have been very helpful to shareholders at many AGM's with CDS issues - they are just poor at e-mail & web service.

bankelele said...

Shiroh: I don't think Suntra is 'political.' They are a well known investment bank/ stockbroker, handled the KCB rights issue well and have been very helpful to shareholders at many AGM's with CDS issues - they are just poor at e-mail & web service.

maitha said...

was impressed by the drummond outfit ,the website adds enough pluses to their already good customer service .CFC life were also good but they lacked a decent web services though they said they were looking into that

Kibet said...

My reservation with Suntra is their customer care and general presentation to the small customer seeking stock brokerage services. Perhaps with their big clients you get better services.
The did some purchase for me, and i wasn't satisfied with their presentation and customer care.

kuoasan said...

CFC does not have a website but they do reply to their e-mails. The service is good.

FD has the BEST website esp if you have an account with them. As Bankelele said you can PLACE orders online. You can also edit them. They provide an updated view of your account i.e. your holdings & current value at today's prices.

If you have access to their website (log in capabilities) then u can access extra research.

bankelele said...

maitha & Kuoasan: FD site is great, but I will stick with CFC who give me good service, even though they don't have online trading.

Kibet: I think it's true at most brokerage houses that big clients get better service.

Anonymous said...

I think not all clients can be satisfied by everything. Best to stick to the broker who makes you happy. I also agree suntra rise is not political it has struggled to get to the place its at. The website works properly and i will stick with them.

Anonymous said...

I am a suntra client and have been for long since suntrastocks to suntra inv bank. The reason the email and website are not working for these clients is that it change from suntrastocks.co.ke to suntra.co.ke.

bankelele said...

Anonymous: Yes suntra.co.ke is a new/correct web address, and probably a lot of other stockbrokers have wrong telephone numbers, e-mail and web addresses listed at the Nairobi Stock Exchange and Capital Markets Authority websites.

But the burden is on the brokers to ensure that the CMA and NSE ALWAYS have their latest & correct contact information to put on their websites, brochures and information that they routinely hand out to the media - since these are major sources of referrals for them.

Mkenya said...

Bankelele your blog is the #1 kenyan blog for me here in the US. I started with Francis Drummond and they are hot. None of the others [CFC, Dyer&Blair, Suntra, African Alliance] have bothered to even respond to emails. I 'm surprised you say Dyer& Blair have a website - i couldnt locate any when i did a google search unless its a recent thing. Big props to Francis Drummond!!! Sometimes their website is not updated daily though.

Anonymous said...

Brokers are brokers but Faida are just inefficient. A transaction which normally takes two to three days will cost you two to three WEEKS to settle. I guess Suntra are cool, am currently with them. Am a small timer and those guys don't ignore me. Faida is operated like a family affair. Try FD or Suntra, their research is usually timely but steer clear off Faida if you speculate<

Anonymous said...

Thanks for the tip re: FD - I will definately switch to them... I was with Francis Thuo for 3 years and they REALLY SUCKED! - CMA needs to do something because they pull some suspicious moves (e.g. not buying rights and then returning clients money months later) ... I am now with CFC, but am experiencing the email non-response issue ... Francis Drummond here I come!!

LipaUshuru said...
This comment has been removed by a blog administrator.
Anonymous said...

I am a client with Sterling stockbrokers and I must say that I am very impressed with the service they have given me.They always keep me updated and have provided me with wise investment advice.Its no wonder my investments have grown twicefold.They are a young company and all I can urge the rest is..WATCH THIS SPACE!!

Anonymous said...

suntra's addresses changed when it transformed into an investment bank. i give it credit but i hear their terms of employment is terrible and dont potray an image of an investment bank.
website: www.suntra.co.ke
e-mail: info@suntra.co.ke

Anonymous said...

I have been looking for a stock broker I visited Faida Securities Ltd they were very helpful and have started my investment with them. The advantage with CDS is that you are not stuck with one broker and you can easily move to another since you already have a CDS Number, as for Suntra I think they give more attention to corporate investors and less to individual investor.

Anonymous said...

I tried Francis Drummond after reading your views. i must admit that their website is very helpful and easy to use, but unfortunately thats where it ends. i made a personal visit and was shocked at the treatment. people were out to lunch at 1500hrs!!! and when i pointed this out, all the receptionist could tell me is that she too was waiting for them so she could go for her lunch. my advice, stick to the website.

bankelele said...

To the last Anonymous poster:

I had essentialy dis-owned my earlier post when I wrote Part II (
http://bankelele.blogspot.com/2006/01/where-to-buy-shares-redux.html) Retail customers, myself included, are treated very poorly at most brokerage houses.

OhThree said...

Excellent blogging!.I am in Columbus, Ohio and have beneffited alot by just reading your blog. Asante sana!

Anonymous said...

KenGen IPO: Dear All, we have been quite for a while,KenGen is soon hitting the market, so please lets exchange tips/ideas.I have a feeling that this year the market is rewarding risk takers and investors who make quick decisions. Hey, why DOES KenGen want to punish small KenGen investor ( 500-20,000 shares)because some big guys with deep pockets decided to to buy 10mill++ shares each, the excess shares should be deducted from them.

Anonymous said...

This information on Stock brokers has taken the biscuit. I've seen complaints of those I thought are the best. So I'll stick with Suntra, at least they have regards to small scale investors.Whether you buy 100shares or A milli, they accept you with open arms.
Keep it up Suntra. You are the best.

Anonymous said...

The Ken-Gen IPO lured me into opening a CDS account and I settled with Sterling Stockbrokers.I am most impressed by the professionalism with which they handle their clients and their extensive market research and website postings.You certainly have a loyal client in me.

Anonymous said...

I have seen the kudos you have all given to Francis Drummond but the experience my colleagues and i have with them is anything but rosy. They seem to give preference to big time investors coz we placed an order for Sameer when they were Kshs.17 and paid them but 2 weeks later the price had soared to Kshs.21 and hadn't been bought.

phoenaidmum said...

Wow! Great info. I've just got clued into Kenya's IPO market following KenGen.Two questions, is it not possible to is it not possible to apply for a brockerage account online at all? And any idea when Telkom Kenya pre-IPO starts?

Anonymous said...

Should we sell Kengen at 40 or should we hold a little longer?What do guys think?

q'uoy said...

thanks for the info onFD. am disappointed at my brokers(name withheld) i am actually changing my account today to Fd since i don't have to always go to town any time i want to sell/buy shares. at least i can now work from my office very comfortably.

bankelele said...

OhThree: Thanks


Anonymous: If you're happy with Suntra, please stick with them

phoenaidmum: Telkom pre-IPO late this year

q'uoy: please be careful with FD, ask questions about their service - they are not too sharp these days

Anonymous said...

i want to register my disappointment with CFC. they have very rude reception and this is giving their corporate a bad picture. They have been very slow in giving clients their refund cheques from Kengen. my friends and I will move to other agents!!

Anonymous said...

I would definately agree with you that CFC they are slow and unwilling unleash investing ideas to their small investors.
am too planning to shift

Anonymous said...

I agree that Cfc they are not the best for the small investors

Anonymous said...

Hi Bankelele. Good work on the share/brokering stuff etc. All the stockbrokers in Kenya suck! I have being trading shares for the last five years and have used different stockbrokers with the same pathetic results. When you go to buy they are happy to take your cheque/cash and you have to keep calling them to confirm your order. But the worst comes when you intend to sell. They take so long even for high traffic shares trading in 100,000 - 200,000 each day. But the bummer comes when you start to inquire and pledge/beg for your cheque. It takes an average of 3 - 4 weeks for all this to happen. I am not talking about non-moving shares but active traffic shares. I have resolved I better take my money to a unit/mutual fund where exit period is two weeks and i get my share. What annoys most is well-connected people make a kill out of price highs and lows but ordinary Mwananchi the price will always be the average since your shares will be sold after the kill!! We need to move to Direct trading like in USA with AMERITRADE and then I will join. Otherwise there is no gain for small investor in this market. Also a lot of insider information is being illegally passed and this can be evidence from the volume before major announcements. The stockbrokers are also secretive and there is no transparency where your money is at any one time during the buying and selling order periods. Can anyone advise on the way forward, I am now 30 and have been in this business since I was 25 and would have been happy to play along mpka the end of my time. Any advices

Anonymous said...

Men..n You've been trading for 5 years and you say it sucks. What will I say when I just started today for the first time.

Anonymous said...

Hi Bankele,

I have some 100k which i will need to spend after two months.Is it advisable to put this money into stocks and cash after the two months ?

Peter said...

Please comment on the eveready shares.

Anonymous said...

I reside in the United States and am interested in opening a CDS account. I am aware that "one first needs to open a CDS account which is free; by filling and signing a CDS 1 form, and providing two passport size photographs and a copy of your ID/Passport. The CDS 1 form is available at all stockbrokers and can usually be mailed to applicants upon request"

Now that I live outside Kenya, do I have to go through some of the things listed above? If not, wnat am I supposed to do?

Najivunia kua Mkenya!

Chege said...

I hav been with Suntra 4 one year now. Started well up until the KenGen IPO. Probably due 2 the oviously explosive n overwhelming customer base, their svcs suck n they no longer give that treasured personalized svc. All u get day in day out is long disorganized queues 4 all svcs. C'mon, wake up n expand, open mo branches in tao n upcountry like CFC n NYAGA S.B. b4 I muv on!

Chege said...

I hav been with Suntra 4 one year now. Started well up until the KenGen IPO. Probably due 2 the oviously explosive n overwhelming customer base, their svcs suck n they no longer give that treasured personalized svc. All u get day in day out is long disorganized queues 4 all svcs. C'mon, wake up n expand, open mo branches in tao n upcountry like CFC n NYAGA S.B. b4 I muv on!

Anonymous said...

You can call me S.A!
1st timer here!Am in SA most of the yr coz of studies, n I jus got in2 shares. The only purchase I made tho, is that of mumias...n dats coz my source of $$ was only willin to give me 10K. I have that same amount with me, set to buy more from another org. Am leavin next month to school. I used Suntra(as advised by folks, b4 I saw dis site).Any advise as to how I can manipulate that $$...now 20K, so that I can increase it in the short time I have left??or as am in SA?

Anonymous said...

hey,
Good tips on the financial.I wanted to know if you had done any research on forex trading.

E-Nyce said...

Wow, what a difference 2 years makes: Francid Drummond is probably the most trashed s.b. firm in the Kenya blogosphere, with D&B a close second...

Gitts said...

3 years later Drummond are the first to reply- within 3 hours!

Anonymous said...

i need help, i surely need to buy the saf com shares, am in US, how can i do this, how can i get the CDS no?
Any ideas
sheila

Anonymous said...

Discount Securities now have a good website and my experience with them so far has been good. Check them out at www.dsl.co.ke

Anonymous said...

i opened with dyer and blair and just frankly they suck like a ,,,,,.... you what. i bought my kengen shares through them and lost my password and this idiots have not replied after i personally called them using a $10.00 calling card on them. yet they have not responded. useless useless. i might Drummond

Andy Inc. said...

dyer and blair suck. I want advice on which stockbroker best serves small investors i.e. good customer service especially when it comes to selling of shares coz all of them like it when an investor is buying....

pls help coz I want to move out of dyer and blair very soon

Anonymous said...

My friend and I bought shares with DSl and they have been bad agents or whatever they are !!,long ques , no statements , poor delivery on service and most recently we found out they sold our shares at a higher price than we had requested and yet they are not giving us our dueswaq

Anonymous said...

It is a big joke trying to buy or sell on line with discount securities, they have no idea of how to manage their on line customers. If only I can find a good company to work with. Now I have to send money to kenya, someone has to take money to discount securities for a fee, then has to tell them what shares to buy and still they cant do it right, e.g about 18 months ago I wanted to buy Athiriver portland cement instead they bought me Bamburi portland cement because they said was the one available though was double the price and I did not even know untill after 2 months. Small investers are there but no one to work with, what a shame.

Genghis Capital Limited said...

Genghis Capital a NSE member is offering online access to CDS accounts.You can open & operate your personal CDS account, place orders and sell.They have an agent in Massachusetts and can be reached at kanyagialmg@gmail.com

Anonymous said...

Thank you all for this comparative information. I have been home for a few weeks and set to return to west africa where i work. Ihave visited several stock brokers about online stock broking services and none seems to be helpful. The last one i visited was Blair and Dyer who told me last week that their online services have been discontinued. This is despite their website indicating otherwise. They also informed me that they cannot handle my account (i had requested for portfolio manager services) unless i was investing one million kenya shillings. Obviously i have to move to a more friendly stock broker now. I will try Francis Drummond since everybody is speaking about them

Anonymous said...

Hi,
How does a UK national sell shares in EABL which were left in a will? I have contacted all of the companies listed on the NSE website on behalf of my elderly grandmother and had no response.
Any advice much appreciated.

Anonymous said...

To sell the EABL shares please call me on 0722127944, ask for kafiru

Acetranslations said...

Thank you very much for your information. How long does it take a stock broker to write out a cheque after effecting the sale?
I have not received my cheque from my stockbroker although my shares were sold last week. It is now a week and some days and I have not received my cheque. They say, " your cheque is not been brought from Nairobi. I trade with CFCFS.
Please advice me on this isue.
Silvestre Boit
Eldoret
email: fachdsch@yahoo.com

financial spread betting said...

Most of the time when buying shares abroad it is dead simple. When it goes wrong though it is a nightmare to sort out.

mwafrika said...

Hi all,

Was wondering if these brokers do trade forex as well.I have been trading forex for 18 months now and can definitely bring more profit to the table.
Let me know if anyone is interested.

Jairus Maloba said...

Thanks for all your comments, Ive contacted FD, lets see how many hours they take to respond, coz I wanna trade online. Jairus Maloba

wilson said...

@ mwafrika ,hi i'm interested in forex trading but understand that most online trading platforms consist of swindlers.can you pliz advice me on a legitimate online platform that you have had an experience with.

Anonymous said...

GUYS THNX AM 21 YRS LOOKING TO INVEST IN SHARES AND THIS BLOG IS THE BOM I AM MORE THAN INFORMED AND I THNK I'LL SWING WITH FRANCIS DRUMMOND

THIS IS A SIGHT TO RECKON WITH

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