CDSC Completes Electronic Transfer of 16 Billion Safaricom Shares

The Central Depository and Settlement Corporation (CDSC) has transferred an additional 16 billion Safaricom PLC shares into the electronic system.

These shares, previously held as physical certificates by Vodafone Limited, now raise the total of Safaricom shares in the Central Depository System (CDS) to 40 billion, equivalent to 100 percent of the company’s issued share capital.

By moving these certificates into electronic form, the CDSC has removed the trading and transfer barriers associated with physical shareholdings. As a result, all Safaricom PLC shares are now fully tradable on the Nairobi Securities Exchange, improving overall market liquidity.

The shift to electronic securities removes many of the risks tied to physical share certificates—everything from loss and forgery to transfer delays and trading holdups.

CDSC’s latest milestone also underscores a broader dematerialization trend across Kenya’s capital markets. With this conversion, 97 billion shares—or roughly 95 percent of all market equity—are now immobilized within the Central Depository System. That represents a significant leap from the first half of 2023, when CDSC’s efforts had already boosted immobilized holdings from 52 percent to 79 percent of total market shares.

“This milestone is not just a numeric improvement; it’s a strong sign of growing investment trust in CDSC’s infrastructure and a major stride in aligning with international best practices,” Neop Kagoma, CDSC CEO said.

Investors who continue to hold physical share certificates are urged to dematerialize their holdings by converting them into electronic form. CDSC stands ready to provide the necessary guidance and support throughout the conversion process.