CDSC Statement on Immobilization of 16 Billion Safaricom Shares By Vodafone Ltd

The Central Depository and Settlement Corporation (CDSC) has marked another significant milestone in the Kenyan capital markets following the successful immobilization of 16 billion Safaricom PLC shares by Vodafone Limited.

This development marks a significant leap forward in the drive toward full dematerialization of securities and reinforces our commitment to facilitating secure efficient and transparent marketplaces that sustain investor confidence.

This transaction has resulted in the total number of Safaricom PLC shares held in electronic format within the Central Depository System (CDS) rising from 24 billion to 40 billion representing almost all of the company’s total issued shares dematerialized.

The 16 billion shares were previously held in certificate format, which limited their ease of trade and transferability through the Nairobi Securities Exchange. By immobilizing these shares into the CDS, they are now securely held in electronic format, significantly enhancing Safaricom PLC shares’ liquidity and overall market transparency and efficiency.

Immobilization eliminates the risks associated with physical certificates including loss, forgery, delayed transfers, and trading while aligning with global best practices for modern capital markets.

The total number of shares held in the CDS now stands at 97 billion representing 95% of the total shares in the Kenya equity market being immobilized. Before the current achievement, CDSC in Q1 2025 moved the immobilized shares from 52% to 79% of the total market equity shares.

Commenting on the achievement, CDSC CEO Jesse Kagoma stated, “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. We commend Vodafone Limited for taking the lead in this transition.”

CDSC remains committed to facilitating fast, secure, reliable, and efficient post-trade operations for investors and other market participants as Kenya continues to build a robust digital financial ecosystem. Investors with share certificates can engage their stockbrokers and registrars for facilitation and guidance on how to convert their physical shareholding records into electronic format.