Who is Dry Associates and Why Invest with Them?

Dry Associates Investment Bank is a well-established financial services firm in Kenya, known for its focus on fixed income, wealth preservation, and tailored client solutions. The firm is particularly respected among conservative and income-oriented investors.

Dry Associates offers government and corporate bonds, treasury bills, portfolio advisory, money market funds, and access to selected equities. Their services are grounded in risk-managed strategies and long-term value generation.

To invest, you can contact their advisory team directly or fill out the account opening forms online. Required documents include your Kenyan ID or passport, KRA PIN, proof of address, and a photo.

If your priority is stability, regular income, and working with a seasoned investment team, Dry Associates offers a reliable and transparent path into Kenya’s capital markets.

What Are Stockbrokers and How Do They Work?

In Kenya, stockbrokers are licensed professionals and companies that are authorised to buy and sell securities on behalf of investors at the Nairobi Securities Exchange (NSE). These firms are regulated by the Capital Markets Authority (CMA) and must comply with financial, ethical and operational standards to protect investor confidence.

Stockbrokers are a key link between the investing public and the market. Whether you are an individual with a small portfolio or a large institutional fund, these licensed players help you access investment opportunities in a secure and regulated environment. Below are the main roles and functions of brokers in Kenya:

• Buying and Selling Securities: Brokers execute buy and sell orders for shares, bonds, and other listed instruments. They ensure that trades are carried out at market price on the NSE and in accordance with your instructions.

• Licensing and Regulation: Every stockbroker in Kenya must be licensed by CMA. They operate under strict guidelines on client fund management, disclosure, and record keeping. If it’s not CMA-approved, it’s not legit.

• Client Accounts and Funds: Brokers operate separate client accounts and are not allowed to mix your funds with company money. Your cash is handled transparently and with full accountability, hakuna mchezo.

• Advisory and Market Education: Many brokers also offer financial education, investment analysis, and guidance tailored to both new and experienced investors. Even if you are starting small, they will guide you pole pole.

• Market Access – IPOs and Trading: Brokers give access to both new listings (Initial Public Offers) and secondary market trades. Whether you want to invest in blue-chip companies or explore bonds, they’ve got you sorted.

• Clearing and Settlement: All trades are cleared and settled through the Central Depository and Settlement Corporation (CDSC), which holds your shares in your CDS account – like your digital title deed for stocks.

• Who They Serve: Brokers serve a wide range of clients, including individuals, SACCOs, pension schemes, corporates, county governments, and foreign investors. Everyone is welcome to invest and grow their wealth through official channels.

Tradable Instruments on the NSE

The NSE provides a platform for the trading of a wide range of financial instruments. These products serve different investor needs, including long-term savings, income generation, and short-term speculation or risk management.

The NSE operates under the regulatory oversight of the Capital Markets Authority (CMA), which ensures fairness, investor protection, and transparency. Whether you are a retail investor from Kisumu or a fund manager based in Nairobi, the NSE offers access to the country’s capital markets through the following instruments:

• Equities (Shares): The NSE lists ordinary and preference shares from publicly listed Kenyan companies in sectors like banking, manufacturing, telecommunications, and agriculture. By investing in shares, you become a part-owner of the company, entitled to dividends and potential capital gains as the share price moves. Shares are traded through licensed brokers and are settled through the Central Depository and Settlement Corporation (CDSC).

• Exchange-Traded Funds (ETFs): ETFs on the NSE are investment products that track the performance of an index or a group of assets. They offer a simple and cost-effective way to invest in a diversified basket of securities and are traded just like shares. ETFs are suitable for both individuals and institutions looking for passive exposure to the market.

• Bonds and Fixed Income Securities: Through the Fixed Income Securities Market Segment (FISMS), the NSE facilitates trading in government and corporate bonds. Treasury Bonds and Infrastructure Bonds issued by the Central Bank of Kenya are among the most popular options. These instruments are preferred by investors seeking steady interest income with relatively low risk.

• Real Estate Investment Trusts (REITs): REITs are regulated collective investment schemes that invest in real estate assets. On the NSE, REITs provide investors with a way to earn rental income and capital gains from property development without directly owning buildings. They are ideal for investors interested in real estate but looking for a more liquid and regulated entry point.

• Equity Index Derivatives: The NSE’s NEXT Derivatives Market allows trading in equity index futures, such as contracts based on the NSE 25 Share Index. These instruments provide an efficient way to hedge against market volatility or gain leveraged exposure to price movements. Derivatives are mainly used by experienced or institutional investors.

• Corporate Bonds: In addition to government securities, listed companies may issue corporate bonds to raise long-term capital. These bonds offer higher yields than Treasury Bonds and are used by investors looking for fixed income with moderate risk. Interest is usually paid semi-annually or annually.

• Commercial Papers: Commercial papers are short-term debt instruments issued by large corporates to meet urgent funding needs. While not commonly traded on the NSE itself, they are available over the counter through licensed market intermediaries and typically target high-net-worth and institutional investors.

• Unit Trusts and CIS (Collective Investment Schemes): Though not directly traded on the NSE, many fund managers offer CIS that invest in NSE-listed instruments like shares and bonds. These are useful for investors seeking diversified portfolios managed by professionals, and are regulated by the CMA.