Making arrangements to transfer the shares of a deceased person is important so as to access the dividends and capital gains from such shares. Below is a simplified procedure of how to transfer the shares at the NSE.

First confirm the number of shares that were held by the deceased from the Central Depository & Settlement Corporation (CDSC). This will assist in determining the exact number of shares held by the deceased. You can also contact the relevant company registrar. This can also be accessed from the statement issued by the CDSC or on the share certificate.

You will also need to apply for Letters of Administration which forms an integral part of the estate administration process

For the purpose of transfer of NSE shares, it is extremely important to state the correct/exact number of shares that were held by the deceased to avoid having to obtain an amended grant. Remember not to state vaguely like “shares held at the Nairobi Securities Exchange” as this will not be acceptable. The correct manner to state is for example; “1,000 shares of East Africa Breweries Limited”.

The name of the beneficiary must be correctly and clearly stated. For clarity, always use the names as listed in the National ID or passport.

Contact a licensed stockbroker to forward the application to the Nairobi Securities Exchange (only licensed stockbrokers can forward the application for processing).

The documents required to process the private transfers are as listed below.

  1. Certified copy of death certificate (should be certified by a Commissioner of Oaths/Advocate)
  2. Certified copy of letters of administration from High/Magistrate Court (should be certified by a Commissioner of Oaths/Advocate. Where the letters of administration have been issued by a foreign court, they should be sealed by the High Court of Kenya).
  3. Certified copy of certificate of confirmation of grant from High/Magistrate court
  4. Certified copy of beneficiary and administrator identity card
  5. Original share certificates and all dividend cheques not presented for payment
  6. Indemnity for lost share certificates and cheques
  7. Certified copy of will (if any)
  8. Transmission fee to be deposited at the listed company’s share registration account
  9. Transfer deed
  10. Approval fee to be deposited in Nairobi Securities Exchange Ltd account. Another extra fee will be paid to the CDA at the time of presenting the documents.
  11. Certified copy of ID card or surrender form for the deceased.
  12. CDS2 – CDA to avail the form to be signed by Administrator(s)
  13. CDS7 – CDS to avail the form- to be signed by both the Administrator(s) and Beneficiary(ies)

In case a client goes through a public trustee (County Commissioner or Deputy County Commissioner) the following documents may be obtained in place of No. 2 & 3 above if the deceased died intestate and the gross of the estate does not exceed Kes 50,000

  1. Letter of indemnity
  2. Certificate of Summary Administration

NB: Transfer documents to be submitted through a Central Depository Agent (CDA) i.e. a licensed stockbroker or an Investment Bank or custodian.

This procedure takes quite some time and we guide our clients all the way once terms have been agreed so that we take over the process till the end. Do you need to transfer shares and require assistance with the process? Get in touch through our Contacts and we’ll be glad to assist.