Since Kenya Power’s latest stellar profits in the stock market, a wave of interest has swept over new investors seeking to grab a share of the utility firm’s stock.
Kenya Power (KPLC.ke) is listed on the Nairobi Securities Exchange (NSE) under the ticker symbol “KPLC” and holds the International Securities Identification Number (ISIN) KE0000000349. With a market capitalization of KES 14.8 billion, Kenya Power is currently the 19th most valuable stock on the NSE, accounting for approximately 0.747% of the total equity market.
The current share price of Kenya Power & Lighting Company (KPLC) is KES 7.18 and the minimum amount you need to begin trading is 100.
Investing in Kenya Power stock is a straight forward process for those interested in potentially growing their wealth.
Here is how to get started:
1. Defining Your Investment Goals
Before resorting to making a purchase, you must deside if you invest for long-term gains or short-term trading. Although KPLC holds a strategic position in the energy sector, it is important to evaluate its financial stability and market performance before investing, as factors like regulatory changes and operational challenges can impact returns. It is advisable to wait until the market stabilizes.
2. Conduct Your Research
Review Kenya Power’s most recent financial statements, paying close attention to key metrics like revenue, net income, and profit margins. A strong revenue growth, such as Kenya Power’s recent increase to Kshs 9.97 billion in profit ,may indicate stability and future growth potential.
3. Select a Trusted Broker
Select a reputable Kenyan broker, preferably one registered with the Capital Markets Authority. Stockbrokers include investment and commercial banks, as well as brokerage firms, which monitor the market on your behalf. Seek brokers with competitive fees, reliable customer support, and access to NSE trading platforms, especially if you intend to track and manage your investments regularly.
Some stockbrokers who offer online trading include:
•AIB capital Ltd
•UAP old mutual securities
•Kingdom Securities Ltd •KCB capital
• Suntra Investment Bank LTD
• Standard Investment Bank
• EA – Kestrel Capital Ltd
• Sterling Capital Limited
• Dyer and Blair Investment Bank LTD
• Genghis Capital
After that, the broker will help you open a Central Deposit and Settlement(CDS) account which holds your shares in electronic form, much like a bank account holds money.
You will present your National ID card or your passport, proof of residence and KRA Pin Certificate to open the account.
Opening and maintaining a CDS account through CBK is free. However, some stockbrokers may charge KES 1,200 for account registration and KES 100 per month for maintenance.
Every time you buy or sell stocks on the NSE, the shares are transferred to or from your CDS account.
4. Open a Trading Account
For Kenyan residents, registering for an NSE trading account is straightforward. The same documents needed for the CDS account will apply in this stage. The broker will guide you through uploading these documents online, and verification typically only takes a few days.
5. Fund Your Trading Account
This refers to transferring money to your brokerage account to purchase shares. Most brokers provide flexible funding options, including bank transfers and mobile money services like M-Pesa through Pay Bill. Transactions are typically done in Kenyan Shillings (KES), but it is advisable to check with your broker for international currency options if you intend to diversify.
After funding, always confirm that the funds reflect in your trading account before placing any buy orders.
6. Buy Your Shares and Apply a Strategy
Once your account is funded, search for the KPLC stock ticker, decide on the number of shares you wish to buy, and confirm your order. Consider using a strategy that aligns with your investment goals—such as dollar-cost averaging for long-term growth or technical analysis if you prefer active trading.
Dollar-cost averaging is an investment strategy where you invest a fixed amount regularly, regardless of share price while technical analysis uses past market data, like prices and volume, to predict future price movements.
You should frequently check and assess the performance of your investments. Since the Kenyan market can change based on local and global energy trends, staying updated on news related to the company you’re investing in and the overall industry will help you make smarter decisions about whether to keep or change your investments.
