The transfer of shares listed on the Nairobi Securities Exchange (NSE) occurs when a shareholder dies and their holdings must be passed to legal beneficiaries such as a spouse, children, or other relatives.
Legal Prerequisites
This process can only be successfully completed in two circumstances:
- Testate: Where the deceased left a valid will bequeathing the shares.
- Intestate: Where the deceased died without a will, necessitating a Grant of Letters of Administration and a Certificate of Confirmation of Grant from a Kenyan court.
Requirements for Private Transfer
- Estate Value > Kshs. 100,000: Certified copies of the Grant and Confirmation of Grant are mandatory. These must be certified by an Advocate and Commissioner of Oaths.
- Estate Value < Kshs. 100,000: A Letter of Indemnity from the Deputy County Commissioner may suffice.
- Foreign Grants: If issued abroad, they must be resealed by the High Court of Kenya.
- Identification: Certified copies of ID/Passport for executors, administrators, and beneficiaries.
- Death Certificate: A certified copy.
- Transfer Forms: Official forms obtained from a stockbroker, signed by both administrators and beneficiaries.
- Share Certificates: Original certificates (if not immobilized). If lost, indemnity forms must be signed and witnessed by an Advocate.
- Dividends: Unpaid dividend cheques or indemnity forms if missing.
Important Notes on Naming Consistency
The name on the share certificate and death certificate must match exactly. Similarly, the names of administrators and beneficiaries must match their identification documents. In the event of any discrepancies, a supporting affidavit must be attached.
Only a licensed stockbroker can forward the transfer application to the Nairobi Securities Exchange and the Central Depository and Settlement Corporation (CDSC).
Do you need assistance with the share transfer process? Contact Ombogo and Company Advocates at legal@ombogo.co.ke for professional estate administration services.
