The Central Depository and Settlement Corporation (CDSC) has announced that 16 billion Safaricom PLC shares have been moved to the electronic system. The shares were previously held by Vodafone Limited and brings the total number of Safaricom shares held in electronic format within the Central Depository System (CDS) to 40 billion, representing 100% of all the company’s issued shares.
The 16 billion shares were previously held as physical certificates, which limited their ease of trade and transferability through the Nairobi Securities Exchange (NSE). By converting these shares into electronic format within the CDS, they are now fully tradable, enhancing the liquidity of Safaricom PLC shares.
The move to electronic securities eliminates numerous risks traditionally associated with physical certificates, such as loss, forgery, and delays in transfers and trading.
This recent accomplishment by CDSC contributes to a larger trend of dematerialization within the Kenyan capital market. The total number of shares now held in the CDS stands at 97 billion, accounting for 95% of all shares in the market. This builds on previous successes, including CDSC’s efforts in the first half of 2023, which saw immobilized shares increase from 52% to 79% of the total market equity shares.
Neop Kagoma, CDSC CEO, emphasized the importance of this achievement. “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,” Kagoma stated. He specifically commended Vodafone Limited for spearheading this transition.
Investors still holding physical share certificates are strongly encouraged to convert them to electronic format and can seek facilitation and guidance from CDSC.