Safaricom has received regulatory approval to launch its second money market fund, Ziidi, expanding its footprint in Kenya’s financial services sector.
The Capital Markets Authority (CMA) approved the initiative, which will be integrated into Safaricom’s M-PESA platform, offering users seamless access to investment opportunities.
The Ziidi Money Market Fund, developed in partnership with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, is an innovative product built to provide accessible and diversified investment options.
It aligns with Kenya’s financial inclusion goal which targets retail investors, particularly the unbanked and underbanked populations, through mobile-based services.
Unlike traditional banking products, money market funds like Ziidi channel deposits into low-risk investments such as government securities and Treasury bills, offering savers higher returns compared to conventional bank accounts.
CMA Chief Executive Wyckliffe Shamiah noted that the fund would empower investors while broadening Safaricom’s presence in Kenya’s capital markets.
The new fund builds on Safaricom’s success with its first money market fund, Mali, launched in 2019 in partnership with Genghis Capital. By November 2024, Mali’s assets under management had grown to KES 3 billion, driven by mobile-enabled investment solutions in Kenya.
Ziidi aims to tap into the country’s growing retail investment market, spurred by the widespread adoption of smartphones. Kenya has over 35 million active smartphones, compared to 30 million feature phones, making digital investment products increasingly viable.
The fund is expected to attract a wide range of users, leveraging M-PESA’s extensive reach. M-PESA, which earned KES 77.22 billion in service revenue in the first half of 2024, remains a priority of Safaricom’s financial services strategy.
In embedding Ziidi within the M-PESA ecosystem, Safaricom seeks to diversify its revenue streams overcoming challenges in its traditional voice, data, and SMS segments.
While specific details on Ziidi’s investment limits and fees are yet to be disclosed, Safaricom’s earlier product, Mali, allowed users to invest from as little as KES 100, with capped daily contributions.
Withdrawals were instant to M-PESA wallets, and fees included fund manager and trustee charges, as well as a withholding tax on earned interest.
