Central Depository Licence Fees / Fees / Charges

A Central Depository Licence is issued by the Capital Markets Authority (CMA) to entities that hold and transfer securities in electronic (dematerialised) form on behalf of investors — a role currently performed in Kenya by the Central Depository and Settlement Corporation (CDSC). This licence is required under Section 23(2) of the Capital Markets Act.

CMA Fee Schedule for Central Depositories

Charge	Amount (KES)
Application Fee	100,000
Licensing Fee	200,000
Annual Regulatory Fee	200,000 (fixed)

Unlike securities exchanges, central depositories pay a fixed annual regulatory fee rather than a percentage of earnings, reflecting their role as market infrastructure rather than a profit-maximising trading venue.

What a Central Depository Does

Maintains electronic records of securities ownership
Facilitates the transfer of securities between buyers and sellers upon settlement
Eliminates the need for physical share certificates
Works alongside settlement banks and the exchange to complete trades

Core Requirements

Demonstrated technical capacity for secure electronic record-keeping
Business continuity and disaster recovery systems
Sufficient core capital as prescribed by CMA
Fit-and-proper assessment of directors and key staff
Interoperability with the licensed securities exchange(s)

Application Process

Submit application and technical infrastructure documentation to CMA
Pay the KES 100,000 application fee
CMA reviews systems security, governance, and capital adequacy
Pay the KES 200,000 licensing fee upon approval
Remit the fixed KES 200,000 annual regulatory fee every year thereafter

At KES 300,000 to enter and KES 200,000 annually thereafter, the Central Depository Licence fee structure is comparable to that of a securities exchange, underscoring how both are treated as critical market infrastructure under Kenya's 2025 licensing regime.

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