Tag Archives: stockbrokers

Nairobi Stockbrokers Take a Bath

Last week saw the release of financial results of SBG Securities (formerly CFC Stanbic Financial Services/CSFS). They are the first stockbroker (they are actually licensed as an Investment Bank) to release their 2016 results and this was done along with the release of the results of Stanbic Bank and their common parent – Stanbic Holdings.

At SBG Securities, revenue dropped from Kshs 599 to Kshs 294 million. This was mainly due to stockbrokerage commissions which reduced from Kshs 399 to Kshs 223 million. Expenses were largely unchanged except for salaries that went down from Kshs 183 to 142 million.

SBG’s pre-tax profit for the year was Kshs 3 million, which was substantially down from Kshs 277 million in 2015. Their balance sheet also reduced down from Kshs 1 billion to 648 million. SBG is the number 3 stockbroker in Kenya with 13.8% share, and in
2015, SBG was second in brokerage commission behind Kestrel Capital.

In a notice sent to clients, they reported that turnover at the Nairobi Securities Exchange for the year was Kshs 294 billion compared to Kshs 419 billion in 2015. Also, that market weakness is expected to continue in 2017. But they added:

A new year always starts on a high with each of us drafting our investment/ financial resolutions. As the year progresses, so do our plans and at times they don’t necessarily materialize. 2017 can be the year that you fulfill your investment resolutions by investing in shares listed on the Nairobi Securities Exchange. Whilst the market has hit an 8-year low, we believe this is the time to invest.

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 forms 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:

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

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.

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.

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%.