Safaricom PLC (NSE: SCOM) stands as Kenya’s most valuable publicly-traded company, with a staggering market capitalization of KES 1.17 trillion. As the dominant telecommunications provider in Kenya, Safaricom enjoys a 64% market share with over 25 million subscribers and has expanded beyond traditional voice services to include innovative solutions like M-PESA mobile money, data services, and enterprise solutions.
For Kenyan investors, Safaricom represents more than just a telecommunications company—it’s a blue-chip stock that has consistently delivered value to shareholders. The stock has shown impressive performance, with a 90.52% year-over-year increase as of September 2025, and has established a reputation for reliable dividend payments, making it attractive for both growth and income investors.
Understanding Safaricom’s Financial Performance
Before you buy Safaricom shares, it’s crucial to understand Safaricom’s recent financial performance:
- Current stock price: KES 29.15 (as of September 10, 2025)
- 52-week range: KES 14.10 – KES 31.00
- Dividend yield: 4.10%
- P/E ratio: 16.78
- EPS (TTM): KES 1.74
The company recently announced a KES 0.65 final dividend for 2025, with payment scheduled for August 31, 2025. This consistent dividend history makes Safaricom particularly attractive for income-focused investors.
Step 1: Choose a Licensed Stockbroker and Open a Trading Account
The first step to investing in Safaricom shares is selecting a licensed stockbroker authorized by the Nairobi Securities Exchange (NSE) and the Capital Markets Authority (CMA). As mentioned in our search results, NCBA Bank is one option , but there are several other reputable brokers including Sterling Capital, Standard Investment Bank, and Dyer & Blair Investment Bank.
When choosing a broker, consider:
- Trading fees (commission rates)
- Account maintenance fees
- Platform usability (especially if you prefer online trading)
- Customer service quality
Pro Tip: Many brokers now offer mobile trading platforms, making it convenient to manage your investments from anywhere.
Step 2: Open a Central Depository System (CDS) Account
A CDS account is essential for holding shares in Kenya. This account acts as a secure electronic registry where your Safaricom shares will be stored. The process has been greatly simplified through digital platforms like Dosikaa App, which allows you to open a CDS account “easily, conveniently, fast, and free!”
The CDSC (Central Depository & Settlement Corporation Limited) provides secure central custody and ensures simplified, swift, and safe transfer of investors’ value. This account will be linked to your trading account to facilitate seamless buying and selling of shares.
Step 3: Fund Your Trading Account
Once your accounts are set up, you need to deposit funds into your trading account. The minimum investment amount varies by broker, but as noted in our search results, NCBA Bank requires a minimum investment of about KES 5,000.
Funding methods typically include:
- Bank transfers
- Mobile money transfers (including M-PESA)
- Direct deposit at broker offices
Remember that you’ll need to account for transaction costs beyond the share price, including brokerage commissions (typically 1.8-2.1%), CMA levy (0.01%), and NSE levy (0.12%).
With your account funded, you can now buy Safaricom shares through your broker’s trading platform. Search for the stock using its ticker symbol “SCOM” on the Nairobi Securities Exchange.
You can place different types of orders:
- Market order: Buy at the current market price
- Limit order: Set a specific price at which you want to buy
- Stop order: Automatically buy when the stock reaches a certain price
After executing your trade, the Safaricom shares will be electronically deposited into your CDS account, typically within 2-3 business days (T+2 settlement cycle).
Alternative Investment Option: Safaricom Investment Cooperative
For those interested in indirect exposure to Safaricom-related investments, the Safaricom Investment Cooperative (SIC) offers an alternative pathway. Established in 2009 under the Co-operatives Act, SIC allows members to pursue joint investments with a focus on real estate, private equity, agribusiness, and quoted securities.
Membership requirements include:
- Purchase a minimum of 500 shares at KES 52.5 per share
- Pay a non-refundable admission fee of KES 10,000
- Total initial payment of KES 36,500
While this doesn’t represent direct ownership of Safaricom shares, it does provide exposure to investments connected to the company and its ecosystem.
How to Research Safaricom Stock Before Investing
Before investing in any stock, including Safaricom, thorough research is essential. Here are key aspects to consider:
Fundamental Analysis
- Examine Safaricom’s financial statements (revenue, earnings, cash flow)
- Analyze key financial ratios (P/E, P/S, debt-to-equity)
- Assess the company’s competitive position and growth prospects
- Evaluate management quality and corporate governance
Technical Analysis
- Study price trends and patterns
- Identify support and resistance levels
- Analyze moving averages and other technical indicators
Market Context
- Understand telecommunications sector dynamics
- Monitor regulatory developments affecting the industry
- Consider macroeconomic factors impacting the Kenyan market
Important Considerations for Safaricom Investors
Dividend Information
Safaricom has a consistent history of dividend payments:
- 2025 final dividend: KES 0.65 (book closure July 31, 2025)
- 2025 interim dividend: KES 0.55 (paid March 31, 2025)
- 2024 dividend yield: 6.56%
Risk Factors
Like any investment, Safaricom shares carry certain risks:
- Market volatility: The stock has a beta of 1.6720, indicating higher volatility than the market
- Regulatory changes: Government policies may affect telecommunications companies
- Competition: Increasing competition in the telecommunications space
- Currency risk: For foreign investors, Kenyan shilling fluctuations matter
Investment Strategies
Consider your investment approach:
- Long-term holding: For dividend income and gradual appreciation
- Active trading: Taking advantage of price fluctuations
- Dollar-cost averaging: Investing fixed amounts regularly regardless of price
| Cost Component | Percentage/Fee | Estimated Cost on KES 10,000 Investment |
|---|---|---|
| Share Value | 100% | KES 10,000 |
| Broker Commission | 1.8-2.1% | KES 180-210 |
| CMA Levy | 0.01% | KES 1 |
| NSE Levy | 0.12% | KES 12 |
| Total Estimated Costs | KES 10,193-10,223 |
Conclusion: Start Your Investment Journey Today
Investing in Safaricom shares represents an opportunity to own a piece of Kenya’s most valuable company and participate in the growth of Kenya’s telecommunications sector. By following the four steps outlined above—selecting a broker, opening a CDS account, funding your account, and placing your order—you can begin your investment journey in one of East Africa’s most prominent companies.
Remember that all investments carry risk, and it’s important to only invest what you can afford to lose. Consider diversifying your portfolio across different asset classes to manage risk effectively, and consult with a financial advisor if you need personalized guidance.
For those ready to begin the process, you can start by visiting the NSE Online Trading Portal to explore brokerage options and begin opening your trading account.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Please conduct your own research and consult with a qualified financial advisor before making investment decisions.
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