Dear Investor,
Effective 15th July 2022, CDSC will introduce a CDS account maintenance fee of KES 100 per month payable annually.
This is the message that stock investors who trade in shares at the Nairobi Securities Exchange have been getting. The new charges mean that a trader who has a brokerage account that has Sh. 12,000 will lose 10 per cent annually in their account without trading anything.
At the same time, the new charges will see the Central Depository and Settlement Corporation (CDSC) collect nearly Sh. 1.8 billion a year. The new charge will earn CDSC six times the revenue collected that year of Sh. 308 million which the platform made from charging transactions, deposits, registry fees, and bond levy.
According to the latest published annual report for 2020 by the CDSC, the CDSC had about 1.5 million accounts out of which 1.1 million were actively trading.
Up until now, the CDSC’s main source of revenue has been from transaction levy charged upon completion of equity and bond transactions in the central depository system. In the financial year 2020, the CDSC earned Sh. 238 million from this levy.
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It charges each investor 0.08 percent of each transaction plus a 0.01 percent for the CDSC guarantee fund.
Depository levy earned the platform Sh. 16.5 million, registry fees Sh. 4.7 million, bond levy Sh. 27.6 million, and others Sh. 20 million.
