Shareholder Information FAQs

Who do I contact with a question about my shares?
You can contact The Shares Department, National Bank on the contact details given below:

Image Registrars Limited
5th Floor, Barclays Plaza
Loita Street
PO BOX 9287-00100, Nairobi
Telephone: 020-2212065, 2230330, 2246449
Fax: 020-2212120
Mobile: 0724 669 667, 0735 565 666
Email: info@image.co.ke
Website: www.image.co.ke

What is immobilization?
Immobilization is the conversion of physical share certificates to electronically held share balances for which the Central Depository has responsibility of maintenance and issuing of regular account statements.

Can I immobilize my shares without share certificates?
Yes. If your share certificates are lost you are required execute an indemnity for lost share certificate, pay the relevant fee for lost certificate and forward to the CDSC Agent/stockbroker before your shares can be immobilized.

If you are the ones who pay dividends, why do you send us to brokers to change our details especially dividend pay point?
This applies in respect to shareholders who have since immobilized their shares hence the CDS account is administered by the CDSC Agent(stockbroker).

Why are the CDS accounts maintained by brokers and not the registrars?
This is as per provision of the CDSC regulations.

Why can’t the registrars access CDS accounts?

The CDSC IT platform is currently restricted to registered CDSC Agents who are currently only stockbrokers.

Why can’t the registrar amend/edit static data for CDS accounts?

This is because the CDSC accounts are originally opened by the CDSC Agents and these are the responsible authority in respect to maintenance of the static data.

Who do we deal with in respect to the transfer of immobilized shares whether in respect to existing shareholders or private transfers from deceased shareholders to the next of kin?
Once the shares have been immobilized all matters relating to such shareholding will need to be handled by the CDSC through the responsible CDSC Agent.

How do I access recent prices for shares and securities?
The Nairobi Stock Exchange (NSE) runs a daily mailing facility by email of all trade activities and related information. This information may be accessed on their website www.nse.co.ke or you could phone the NSE and request to be added to their mailing list. The prices are also printed in the local news paper.

How do I change the address on my share account?
You can send written instructions or a completed change of address form to: Image Registrars, 5th Floor, Barclays Plaza, PO BOX 9287-00100, Nairobi
How can a non-registered shareholder report lost or stolen certificates?

In respect to representatives of registered shareholders e.g. Executors of Deceased Estates, the report must be submitted in writing supported by appropriate documentation indicating the relationship between the shareholder and the representative.

I have more than one account in the same company. How do I combine these into one account?

Since the shares are already dematerialized you will have to maintain the two separate accounts. However, you can immobilize your shares into a CDS account meaning that your shares will be in one account.

Can I have my dividends electronically deposited to my bank account?
Yes, your dividends can be paid directly to your bank account provided that if you hold a CDS account you provide your bank details through your broker and if you hold share certificates you forward your details through the Shares Registrar at the address provided above.

How can I get a lost or missing dividend cheque replaced?
To have a cheque replaced, you must request a stop payment on the cheque with the Registrars and request that another one be re-issued. The following information will be needed in order to replace your cheque:

  • The payment date of the check being replaced
  • Your exact shareholder registration details including shares/CDSC account number, name, address
  • Upon receipt of your written request or personal visit to Registrars offices an indemnity form will be issued to you and a cheque processed thereafter.
Who can buy National Bank shares?
Anyone can buy the shares. You can place your order to buy or sell through National Bank’s Custodial Department or any stock broker or Investment Bank.

Who sets the shares price?
Since National Bank shares are listed on the NSE, the share price will is determined by the market forces of supply and demand.

I bought my National Bank shares during the IPO, how can I get my shares certificate?
Visit your selling agent where you applied for the shares and you will be issued with, or assisted to get your certificate.

If I bought the shares during the IPO, am I entitled to dividends??
Yes, you are entitled to dividends if you hold the shares until dividends are announced and paid.

Can one sell the shares in bits?
Yes you can.

What are the charges for selling/buying the shares?
The combined charges by brokers, the CMA and CDSC are 1.82% of the value of the transaction. The transaction charges are 0.2% of the transaction value, subject to a minimum Kes.500.00 for each completed transaction. This means that it will cost you about 2.1% of the value of the shares bought or sold. It is advisable to ask your broker/agent about the charges you expect to pay, prior to giving them instruction to buy or sell your shares for you.

Can one buy the shares again after selling?
Yes. You can buy and sell the shares as often as you so wish and as long as they are available in the market.

What is the expiry period for a shares sale /buying order?
 You can give your broker/agent your preferred dates for completion of the deal. The time it takes to complete your transaction may depend on a couple of things, of which the key ones include the availability of shares or buyers, the level of prices and the speed at which your agent or shares registrar executes your instructions.

Can one check the status of a CDSC account at National Bank if the account was not opened with National Bank?
No. the status of a CDSC account can only be checked at the bank or broker where the CDS account was opened.

What is the guarantee that I have shares and they are safe in the CDS account?

You can visit your broker for confirmation on the status of your CDS account. In addition, the CDSC regularly sends account statements every month for all active accounts.

Can one change a broker?
Yes. Visit the current broker and you will be assisted in filing the relevant CDSC account
transfer forms.

What are the charges for transferring a CDS account from one broker to another?
Kes 200.00 only.

Can one sell the shares if they are outside the country?
Yes. One needs to fill the original forms and send them to his/her broker together with any copy of identification documents which were used when opening the CDSC account, e.g. the national
identity card or passport.

How secure are the shares in a CDS account?
The shares are safe since the CDSC account because it is opened using the investor’s National Identity card (ID). Also, Brokers only work under duly-signed instructions from the investors. We would be glad if you opened a CDS account with National Bank for ease in monitoring and advising on your investments.

Why should I buy National Bank Shares?
With the projected growth, this is a good Bank to invest in.

How can the shares help me grow my business?
Buying the shares is a long term investment. You can use the shares as collateral to secure loans from other financial institutions. The law does not allow a bank to use its own shares as security. Share prices can rise and you can sell and use the money as desired. However, shares prices can rise or fall.

As a shareholder, do I have any authority in the bank?
As a shareholder you are entitled to attend, participate and vote in the Company’s general meetings. You will receive notice of general meetings.

What is primary & secondary market?
Primary market is the Initial Public Offer (IPO) where shares are offered to public investors by the issuer company for the first time. The Secondary market is where shares are traded – that is at the Stock Exchange after allocation of the shares during the IPO.

Must I have/open a CDS account with National bank to buy the shares?
No. You can open with a stockbroker, other Central Depository Agents or use one you currently hold. Ideally you should use the one you already have unless you want another one.

Can a group buy shares in its names or it has to be individuals?
If the group is registered, it can buy in the name of the group which should have a CDS account in its name. If not, it has to buy through representatives or their own names jointly.

What are the requirements for buying shares for a registered group/ company?
Registration certificate should be attached to the application form and the signing mandates. A CDSC account in the same name should also be quoted if shares are to be credited into a CDS account.

If we bought the shares as a group how will the bank ensure that the officials for the group don't sell the shares without the group members consent?
The bank will credit the CDS account given as per instructions given in the share application.
Trading in the Secondary market will be subject to existing mandates of the group. The bank cannot protect you from your own members.

Once I buy the shares can I use them (shares) as security to get a loan from the bank?
The bank will not take the National Bank share as security for any loan. However, other commercial banks or lenders can take National Bank shares as security for loans.

How do I transfer shares from a deceased shareholder’s account into my names?
This transfer is facilitated by the Nairobi Stock Exchange’s licensed stockbroker. The administrator is advised to lodge the documents listed below with a stockbroker of his/her choice:

  • *certified copies of Grant Letters of Administration AND Certificate of Confirmation of Grant from the High Court. This is where the gross value of the estate exceeds Kshs. 100,000
  • OR *District Commissioner’s Letter of Indemnity and Summary Letters of Administration. This is where the gross value of the estate does not exceed Kshs.100,000
  • Certified copy of death certificate
  • Certified copy of ID card/passport of the administrator(s) and beneficiaries
  • All the share certificates. If some are missing or lost, indemnity forms will be issued by the Registrars and should be signed by the administrator(s) whose signature must be witnessed by a commissioner for oaths/advocate OR any judge/magistrate. Image Registrars will charge for replacement of share certificates depending on the number of certificates lost.
  • Unpaid dividend cheques and/or, if the cheques are missing, an indemnity by Image Registrars.
  • Transfer forms obtainable from stockbrokers/our offices to be signed by both the administrator(s) and the beneficiary.
  • Transmission fee payable to Image Registrars.
Who may invest?
The following is a list of persons who may invest in shares. Any other type of “investor” may need to be discussed.

  • Any individual over the age of 18 years of age, whether Kenyan or not. Nationality should be indicated. Authorised selling agent to ensure that the CDS account correctly reflects FI in case of foreign individual to enable the registrar to make appropriate returns.
  • Any company incorporated in Kenya or in any other country. For foreign companies please ensure that the account number has FC at the end so that the registrar can make reports on foreign holdings.
  • Registered Co-operative Societies of any description – Saccos, Co-operative Unions, etc.
  • Registered NGOs.
  • Incorporated Trustees – these should have a certificate of incorporation issued by the Ministry of Lands.
  • Churches, Political Parties, Societies and Clubs which are registered under the Societies Act can only invest through their Trustees. If the Trustees are not incorporated as set out in 5 above, then the trustees or official should invest in their joint names.
  • Sole proprietorships, businesses and partnerships with Registered Business Names. Where a business name is not registered, then the proprietors should invest in their individual names.
  • Limited Liability Partnerships duly registered under the Limited Partnerships Act.
  • Self Help Groups, where the same are registered under the Ministry of Culture and Social Services (by whatever the current names may be) may invest provided they have a valid certificate of registration.
  • Unregistered Chamas, self help groups, investments groups, etc may invest through their officials. They should be advised to ensure their rules are clear on the trust relationship. The trouble with these is that when the officials change they would have to open new accounts.
  • Nominee Companies. The IM is clear that any nominee must represent genuine investors who have not otherwise applied.
  • Registered Retirement Benefit Schemes – ordinarily these will do so through Fund Managers.
    Children under 18 years of age are not eligible to invest in shares.
What is Dematerialization?
National Bank shares were declared dematerialized on 1st November 2013. On the dematerialization date, the underlying physical certificate ceased to be evidence of ownership of securities of any company quoted at the Nairobi Securities Exchange (NSE). Evidence of ownership will be in the electronic holdings maintained in the Central Depository System (CDS) operated by CDSC.

What is a Dematerialized Security?
It is a book entry security which has been prescribed by CDSC under section24 of the Central Depositories Act, whereby the underlying physical certificate is no longer recognized as evidence of ownership under the Companies ActCap 486 on or after the dematerialization date.

What is the impact of Dematerialization?
Previously, shares could be withdrawn from a CDS account and held in a certificated form. With effect from the Dematerialization date (1st November 2013) shares will not be withdrawn from the CDS account because the law does not permit the issuing of share certificates with respect to a dematerialized security.

What does Dematerialization mean to the issuer (National Bank)?
Issuers of Dematerialized securities will no longer issue certificates to their shareholders whether for additional shares, bonus issues, rights issues or shares splits. All these shall be issued in electronic form.

What Do I need to do as a shareholder if I have already depositedall my shares in the CDS account?
You shall not be required to take any further action as a result of dematerialization.

What are the benefits of Dematerialization?
  • There will be no loss of certificates since they will be kept in an electronic form.
  • It will be easier and faster to transfer or sell your shares.
  • Your share certificates will not be mutilated since they will be kept in electronic form in your CDS account.
What happened to my shares after the 1st November 2013?
All shares that are not immobilized are held in trust by National Bank in a CDS account.

What if I want to access my shares which are held in trust?
If you wish to access your shares for purposes of trading, transfer etc you will need to follow a verification process through the registrar after which, your shares will be transferred to your personal CDS account once you have open edit.

How do I keep track of my shares?
CDSC shall send you monthly statements if your account is active otherwise;you will receive your statement only once a year. However, if you would like to view/download/print your statements, you can visit CDSC website on www.cdsckenya.com. You can also subscribe to CDSC mobile services and you shall receive an alert every time there is an activity in your account e.g. corporate actions, sale, buy, etc., for a minimal fee of Kshs.10.00 per alert. To subscribe,send the word “register” to 2372 and follow the instructions.