I have never received my IPO refunds. What should I do?

All the IPO refund cheques were sent in May 2006 to the IPO selling agents, that is, stockbrokers and banks. Please collect your IPO refund from the office of the IPO selling agent at which you made the payment for the purchase of your KenGen shares.

I have never received my IPO share certificate. What should I do?

Please note that the IPO share certificates were only issued out to shareholders who did not hold a CDSC account.

Further, all the IPO certificates were sent in May 2006 to the IPO selling agents, that is, stockbrokers and banks. Please collect your IPO share certificate from the office of the IPO selling agent at which you made the payment for purchase of your KenGen shares.

During the IPO, I was allocated fewer shares than I had applied for. What happened?

The KenGen IPO attracted a huge number of applicants which led to the oversubscription of the IPO by over 300%. As a result, applicants who had applied for the minimum of 500 shares were fully allocated, however anyone who had applied for more than 500 shares was allocated a proportion of his/her applied shares. The maximum allocation for any public IPO applicant was 6,431 shares. The excess IPO funds referred to as’ IPO refunds’ were returned in May 2006 to the IPO selling agents for collection by the respective applicants.
 

What are dividends?

Dividends are paid out of the profits of the company to shareholders and are paid net of withholding tax (currently 5% for locals & 10% for foreigners). It may be paid once a year (final dividend) or twice a year (interim & final dividend). .

What is meant by ‘Ex Dividend’ and ‘Cum Dividend’?

Upon announcement of the company’s financial results, a date is fixed for the Closure of the Register of Members for the purpose of payment of dividend.

This date will determine the shareholders who will qualify for dividends.Hence, purchases made at the stock exchange before the Closure of Register are described as ‘cum div’ and will qualify for dividends while purchases made after the Closure of Register are described as ‘ex div’ and do not qualify for dividends.Conversely, if you sell your shares before the Closure of Register, that is, ‘cum div’ you will not qualify for the dividends, however if you sell your shares after the Closure of Register, that is, ‘ex-div’ you will qualify for dividends.

Can I have my dividend paid directly into my bank account?

Yes you can. For Central Depository System (CDS) account-holders, please contact your stockbroker or custodian bank.

For share certificate holders, please notify Image Registrars in writing of your bank account details and if possible your share account number.

I have not received my dividend. What should I do?

Please contact Image Registrars who will check the payment details prior to the processing of a replacement cheque.

My dividend warrant is out of date and is now invalid. What should I do?

Please return it to Image Registrars, for re-issuance of a replacement cheque. Please note that the 2006 Final dividend warrants are valid for one year from the date of issue while the 2007 Interim & Final dividend warrants are valid for two years.

I have found an old uncashed dividend warrant. What can I do?

Please note that stale dividend warrants can be replaced. Please submit any uncashed warrant to Image Registrars for re-issuance at no cost.

What happens if I lose my dividend warrant?

Please inform Image Registrars immediately either in writing or in person. Image Registrars will issue an indemnity form for your execution before a Commissioner for Oaths to facilitate the issuance of stop-payment instructions to our bankers. Thereafter, the replacement cheque will be issued out to you. However, upon recovery you are expected to return the original one to Image Registrars.

What is CDSC?

CDSC stands for the Central Depository and Settlement Corporation Limited, a company incorporated under the Companies Act and approved to establish a central depository under the Central Depository Act. 2000.

What is the CDS?

CDS stands for the Central Depository System. This is a computer system operated by CDSC that facilitates holding of securities in electronic accounts opened by shareholders and the process of transferring shares traded at the Nairobi.

Must I open a CDS account?

Yes, if you intend to trade in shares that are listed on the Nairobi Stock Exchange.

What do I need to open a CDS account?

You need to present two passport size photographs, original and copy of National ID/Passport at the offices of any CDA. In the case of a company you need the original certificate of incorporation, and if you are an organization registered in any other way you need the certificate of registration. Directors of a company will also need to provide their ID Cards and passport size photographs.

What is CDA?

CDA stands for a Central Depository Agent, that is, either a stockbroker or a custodian bank who has been authorized by CDSC to open accounts in the CDS on behalf of investors.

Please note that all stockbrokers are CDAs( Please visit the Nairobi Stock Exchange website at www.nse.co.ke to view the full list of authorised stockbrokers). In addition, Barclays Bank, Stanbic Bank, Kenya Commercial Bank, National Bank of Kenya and National Industrial Credit Bank (through their custodian departments) are CDAs.

What is Immobilisation of Shares?

This is the process of transferring shares from share certificate form and subsequent deposit into a CDSC account.

The immobilisation process is as follows:
a. Open a CDSC account at the office of a stockbroker or CDA of your choice;

b. Submit your original certificate at the stockbroker’s office and complete out a CDS_2 form (you will retain the triplicate copy of the form for your records);

c. The CDA will forward the form and the certificate to CDSC.

d. CDSC will then forward the certificate and form to 'Image Registrars' for verification. When ‘Image Registrars’ confirms that the certificate and your signature are genuine, ‘Image Registrars’ will retain the original certificate and send back the duplicate copy of your form to CDSC for immobilisation.

e.Once the shares are deposited into your account by CDSC you can  now trade in them.

What do I get to prove I have deposited shares?

i. You get the duplicate copy of the deposit form (CDS_2);

ii. You get a monthly statement if you have a trade that month;

iii. You get a bi-annually statement if you have not had a trade for six months;

iv. The statements are sent directly to your postal address.

Can I use a different Stockbroker from the one I have been using?

Yes, you can use as many stockbrokers as you want.

How can I move from one stockbroker to another

By completing and signing the Securities Transfer Forms (CDS_4A + CDS_4B) supplied to you by your stockbroker. The form must be signed also by your current stockbroker (CDS_4A) and your new stockbroker (CDS_4B).

Will it cost me more to use CDS?

No. There is absolutely no increase in cost for the CDS account holder.

Do I lose my dividends and bonuses?

No. Your dividends will be sent directly to you through your postal address or bank( depends on your preference).

How can I contact the CDSC?

You can contact CDSC on telephone no: 020- 253079/253088 or via email: helpdesk@cdsckenya.com

 

When does the KenGen hold its Annual General Meeting?

We have held our past Annual General Meetings in the month of November each year.

I cannot attend the AGM. Can I send a proxy?

Yes you can. Please complete out the proxy form enclosed in the Annual Report and return it back to us before forty-eight (48) hours of the time of the AGM.

What do I do if I need to change my address?

For Central Depository System (CDS) account-holders, please notify your stockbroker or custodian bank.

For share certificate holders, please notify Image Registrars in writing of both your old and new address and if possible your share account number.

How can I find out how many shares I hold?

You can determine the number of shares you hold by adding up all your share certificates, or refer to your recent CDSC statement or the most recent dividend warrant or by contacting 'Image Registrars'.

How can I buy or sell KenGen shares?

Please note that in Kenya, you can only buy or sell shares through a stockbroker. There are currently eighteen (18) stockbroker firms authorised by the Nairobi Stock Exchange to engage in this business.  (Please visit the Nairobi Stock Exchange website at www.nse.co.ke to view the full list of authorised stockbrokers).

Additionally, you need a CDS account to trade in any shares on the Nairobi Stock Exchange.

I receive multiple sets of Annual Reports/Accounts. Why is this and what should I do?

If you purchase your shares through different stockbrokers, the CDSC account will bear the respective stockbroker ID no, hence 'Image Registrars' will allocate different and distinct shareholder accounts to you. If the particulars of your name and ID no. are similar, please write to Image Registrars requesting them to consolidate or merge your shareholder accounts.

What are Share Certificates?

These are evidence of your ownership of the shares and represent your interest in the company. Share certificates are only issued out to shareholders who do not hold a CDSC account.

I have not received my Share Certificate, what should I do?

Please notify 'Image Registrars' in writing; perhaps the share certificate has been returned to their offices by the Post Office as an unclaimed or Return-To-Sender(RTS) item.

I have a CDS account but I have not received my share certificate, what should I do?

For CDSC account holders, share certificates cannot be issued because the CDSC account is the electronic equivalent of a share account. Instead, the CDSC will dispatch a CDSC statement which indicates your current shareholding to your mailing address.

What should I do if I cannot locate my share certificate?

Please inform Image Registrars immediately in writing or visit their offices. The process of issuance of a replacement certificate is as follows:

    * Image Registrars will issue an indemnity form to be executed by you (at your expense) before a Commissioner of Oaths to protect all parties against the possibility that the lost certificate might return to circulation;
    * Image Registrars will prepare a replacement certificate upon receipt of your executed indemnity form.


What should I do if I have changed my name?

Please submit the following documents to 'Image Registrars':

    * Photocopy of Marriage Certificate and original for sighting;
    * Original Sworn affidavit attesting to the change of name;
    * Certified copy of identity card/passport.


What are the requirements for the transfer of the shares of a deceased shareholder to his next of kin or beneficiary?

Firstly, you should acquire a death certificate.

Thereafter, for shares valued at Kshs.100,000.00 and below (that is, no. of shares multiplied by the current share price), you can opt to contact the District Commissioner of your area who will facilitate the transfer process.

Alternatively, you could acquire the Grant of Letters of Administration & the Certificate of Confirmation of Grant of Letters of Administration from the High Court.

Thereafter, for CDSC accountholders please submit the DC’S documentation or the Certificate of Confirmation/Grant of Letter of Administration to your CDA for completion of the transfer process. For share certificate holders, either the DC will directly inform 'Image Registrars' in writing or you will submit the certified copes of the Certificate of Confirmation/Grant of Letters of Administration to Image Registrars, to facilitate the transfer of the shares.