The Central Depository and Settlement Corporation (CDSC) has successfully completed the immobilization of 16 billion Safaricom PLC shares, a development heralded as a transformative leap for Kenya’s capital markets and financial infrastructure.
The move shifts Safaricom’s shares from physical certificates into electronic format, held securely within the Central Depository System (CDS), enhancing transparency, efficiency, and investor confidence in one of Africa’s most dynamic equity markets.
The milestone was reached following a transaction involving Vodafone Limited, which significantly increased the volume of electronically held Safaricom shares from 24 billion to 40 billion, representing almost the entirety of the company’s issued shares.
The development is seen as a critical step in Kenya’s capital market evolution and its alignment with international best practices. It also advances the country’s ambition of building a fully dematerialized financial ecosystem that reduces dependency on physical share certificates.
“This milestone is not just a numeric achievement, it is a strong signal of growing institutional trust in CDSC’s infrastructure and a major stride in aligning with international best practices,” said Jesse Kagoma, CEO of CDSC. “We commend Vodafone Limited for taking the lead in this transition.”
Previously, the 16 billion Safaricom shares were held in certificate form posing barriers to fast, secure trade through the Nairobi Securities Exchange. Immobilizing these shares enables easier ownership transfers, reduces settlement times, and diminishes risks linked to paper-based securities such as loss, forgery, or delayed processing.
By moving these shares into CDS, the process of trading becomes significantly more seamless, boosting liquidity for Safaricom PLC shares and enhancing the broader market’s operational efficiency.
The achievement has propelled the total number of shares held electronically within the CDS to a record 97 billion. This now accounts for 95% of all shares in Kenya’s equity market, according to data released by the CDSC.
Just three months ago, in the first quarter of 2025, the CDSC had succeeded in immobilizing 79% of the country’s total market shares up from 52% in 2024. The recent Safaricom transaction now brings the figure much closer to total dematerialization.
The immobilization of Safaricom’s 16 billion shares alone represents one of the largest single-company share digitization events in the region’s history, reflecting CDSC’s strategic leadership in modernizing market infrastructure across East Africa.
CDSC remains committed to its mission of building a fast, secure, and reliable platform that enables seamless share ownership, transfers, and settlement. The organization continues to encourage listed firms and investors to transition their physical certificates into electronic records a process that reduces friction and enhances confidence in Kenya’s rapidly growing capital market.
The company’s infrastructure is already being used by over 1.5 million investors, including more than 600 issuers, making it one of the largest depository systems in Africa. In addition to share depository services, CDSC offers securities lending, borrowing products, and tools that simplify stockholder registry management and post-trade operations.
The achievement is also expected to benefit market participants such as custodians, brokerage firms, and retail investors who rely on efficient, transparent, and technology-driven financial systems.
Kenya’s progress in immobilization provides a benchmark for other emerging economies seeking to modernize their financial markets. Analysts say that as global capital flows increasingly favor markets with robust, digitized infrastructure, the CDSC’s role becomes even more pivotal.
“Such reforms enhance Kenya’s competitiveness as a capital markets hub in the region,” noted a senior market analyst. “By removing legacy inefficiencies, the country becomes more attractive to both institutional and retail investors, including those from the diaspora.”
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