1. The Central Depository & Settlement Corporation Ltd.
ROSE MAMBO
Chief Executive
Central Depository & Settlement Corp. Limited
AMEDA CONFERENCE
SUN CITY, SOUTH AFRICA
24TH OCTOBER 2008

2. THE KENYAN CAPITAL MARKETS MARKET PARTICIPANTS
The Capital Markets Authority
The Nairobi Stock Exchange
Stock Brokerage Firms (CDA)
Private and Corporate Investors
Custodian Banks (CDA)
Issuers
Fund managers
Investment advisors
Unit Trusts
Registrars
Settlement Bank

3. THE KENYAN CAPITAL MARKET
THE CAPITAL MARKETS AUTHORITY
The market regulator
Established under the Capital Markets Act in 1991
Makes the Capital Markets Regulations
Licenses market participants including CDSC
Approves the listing of the securities of Issuers on the Exchange
Approves the CDS Rules and Procedures
Enforces the Rules and Regulations

4. ESTABLISHMENT OF CDSC Central Depositories Act 2000
Must be approved in writing by CMA
A stock exchange must be a shareholder
CDS Rules shall be approved by the regulator
License is subject to annual renewal

5. GOVERNANCE STRUCTURE CAPITAL AUTHORISED AND FULLY PAID UP
100,000,000/= (US$ 1.4M) DIVIDED INTO 1,000,000 SHARES OF 100/= EACH
ISSUED – ALL THE AUTHORISED CAPITAL
FULLY PAID UP

6. GOVERNANCE STRUCTURE SHAREHOLDING NSE - 20% AKS NOMINEES - 18%
CAPITAL MARKET CHALLENGE FUND – 50%
INVESTOR COMPENSATION FUND %
DSE %
USE % 8

7. GOVERNANCE STRUCTURE BOARD OF DIRECTORS 11 DIRECTORS
ONE OF THEM TO BE CHAIRMAN
DIRECTORS APPOINTED BY MEMBERS AS FOLLOWS:
NSE -2
THE FUND -4
AKS - 1
DSE - 1
USE - 1
PUBLIC INTEREST – 2 – NOT STOCKBROKERS
DIRECTORS REMOVED BY APPOINTING PARTY 16

8. The Capital Markets Authority The Nairobi Stock Exchange
CDS CONSTITUENTS
The CDS Organization
The Capital Markets Authority
The Nairobi Stock Exchange
Stock Brokerage Firms (CDAs)
Custodian Banks (CDAs)
Retail and Institutional Investors
Issuers and Registrars
Settlement Bank 16

9. APPOINTMENT OF CENTRAL DEPOSITORY AGENTS
Members of the Stock Exchange
Non-Bank subsidiary of a bank or financial institutional
Any institutional investor
Any body corporate as prescribed by CMA
Currently only stockbrokers and custodian banks are CDAs

10. CENTRAL DEPOSITORY AGENTS
Stockbrokers are trading participant
Custodian banks are settlement participants only
Stockbrokers can allocate trades to any custodian account
Custodians have the right of negative affirmation by T+2

11. SETTLEMENT OF TRANSACTIONS
T+4 Settlement Cycle
T+1 Board
Settlement Bank – Stanbic Bank, Kenya
All CDAs have a settlement account with the settlement Bank
Settlement takes place at 4.00 p.m.
Not Real DVP – Banks moves cash and then CDSC moves securities

12. GUARANTEE FUND
Used to Settle Transactions When CDA fails to fund settlement account
Comprises:
A guarantee fund levy – 0.01%
Contribution of 1,500,000/= per CDA (US$ 22,000)
Amount currently in the NSE Investor Compensation Fund
penalties

13. GUARANTEE FUND
No Settlement Caps – In the process of introducing the Caps
Trading limit will be determined based on contribution to the Guarantee Fund
Fund has been used, most notable for three stockbrokers – 2 placed under statutory management by CMA, 1 to restructure

14. Depository Statistics as at 30th September 2008
PROGRESS TO DATE
CDSC started operations on 10th November 2004
Depository Statistics as at 30th September 2008
Number of Accounts ,447,609
Number of Shares immobilized bn (31%)
Value of shares in depository % of market cap
Market capitalization = Kshs. 970,853,255,000 (US$ 1.3bn) 16

15. MARKET PERFORMANCE 2008

16. MARKET PERFROMANCE

17. GOING FORWARD…
Regional Integration – East African Markets (Kenya, Uganda, Tanzania, Rwanda, Burundi)
Value added services
Handling of IPOs
Registrar Services
SMS Alerts
E-Statements

18. THE END .
Q&A