The Central Depository and Settlement Corporation (CDSC) has successfully transferred 16 billion of Safaricom PLC shares from paper certificates into electronic format.
The move was made by Vodafone Limited, one of Safaricom’s major shareholders, marking a big step in the modernisation of the capital markets.
Consequently, the transfer raises the total number of Safaricom shares held in the Central Depository System (CDS) from 24 billion to 40 billion, covering nearly all of the company’s issued shares.
“The 16 billion shares were previously held in certificate format, which limited their ease of trade and transferability through the Nairobi Securities Exchange.
“By immobilising these shares into the CDS, they are now securely held in electronic format, significantly enhancing Safaricom PLC shares’ liquidity and overall market transparency and efficiency,” the corporation noted.
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How Safaricom Benefits from the Move
Moreover, CDSC indicated that the move boosts efficiency, transparency, and investor confidence.
Electronic shares are easier to trade, more secure, and reduce the risks linked to physical share certificates, such as loss, forgery, or delays in transfer.
“This development marks a significant leap forward in the drive toward full dematerialisation of securities and reinforces our commitment to facilitating secure, efficient, and transparent marketplaces that sustain investor confidence,
“Immobilisation eliminates the risks associated with physical certificates, including loss, forgery, delayed transfers, and trading while aligning with global best practices for modern capital markets,” the notice read in part.
With the transaction, the total number of shares held electronically in Kenya now stands at 97 billion, representing 95% of all shares in the market.
In early 2025, only 52% of shares were immobilised in Kenya.
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CDSC on the Move
CDSC has urged investors still holding physical certificates to contact their stockbrokers or registrars for help in converting them into digital format.
Moreover, the corporation indicated that it remained committed to building a fast, reliable, and secure post-trade infrastructure to support a digital financial future for Kenya.
Commenting on the achievement, CDSC CEO Jesse Kagoma commended Vodafone Limited for taking the lead in the transition.
“This milestone is not just a numeric achievement, it is a strong signal of growing institutional trust in CDSC’s infrastructure and a major stride in aligning with international best practices,” he said.
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