Very likely this is just for increased pay and perks.

Already in the fees charged for every trade there is a CSCD, NSE and CMA levy.

And don't forget the brokerage fees and VAT.

There are around 1.6M individual Kenyan CDSC accounts, majority of which are dormant. This new fee will make the situation even worse.

Time to consider markets in other jurisdictions or other asset classes.

CMA,NSE and CDSC should have invested in a joint marketing campaign to increase local participation in the market, the resulting growth would increase revenues.
1,200 per year isn't cheap. There should be bands based on portfolio size with this figure being the highest possible. Exempt portfolios below 100k.
Part of the reason for current bear is exit of foreign investors, now CDSC wants to put another barrier for potential local investors?
This will not help the market.
That aside since since it's not transactional how will it be paid?
There's somebody out there who sold shares when they were cum bonus and forgot about it. Will they now be billed?
They will sell and never look back.

According to a tweet reply by @cdsckenya "The fee will be collected through your stockbroker on an annual basis .... "

Please sign the petition at https://chng.it/WfjBFTkt6g to say NO to CDS Account Maintenance Fee