Safaricom Ziidi Money Market Fund (MMF) Hit Sh2.85bn After CMA Approval.
Safaricom’s latest Money Market Fund (MMF), Ziidi, has achieved remarkable success since its pilot launch in December last year. The fund has accumulated Sh2.85 billion in assets under management and attracted over 450,000 customers. This performance has eclipsed Mali, the telco’s earlier fund that faced partnership challenges.
The official launch of Ziidi on January 21, 2025, now opens the product to millions of M-Pesa users, allowing investments as low as Sh100 with daily interest earnings. The product leverages Safaricom’s collaboration with fund managers Standard Investment Bank (SIB) and ALA Capital Limited, reinforcing its market position.
Ziidi MMF offers flexibility and accessibility to customers by enabling free deposits and withdrawals through M-Pesa wallets. Key features include:
| Feature | Details |
|---|---|
| Minimum Investment Amount | Sh100 |
| Daily Investment Limit | Sh500,000 (M-Pesa’s daily limit) |
| Per-Transaction Limit | Sh250,000 |
| Interest Visibility | Daily accruals visible in Ziidi wallet |
Customers can move money seamlessly between M-Pesa, M-Shwari, and Ziidi accounts, providing a simple and efficient way to grow wealth.
Comparing Ziidi and Mali
Mali, launched in 2019 as a partnership between Safaricom and Genghis Capital, struggled to transition beyond the pilot phase. As of March last year, Mali had pooled Sh2.3 billion but remained a closed fund, barring new investors. Safaricom’s decision to introduce Ziidi drew protests from Genghis Capital, as the new offering overshadowed the older product. The telco’s press release notably omitted any reference to Mali’s future.
During the launch, Safaricom CEO Peter Ndegwa emphasized inclusivity, stating that Ziidi is designed to empower Kenyans, regardless of their financial background, to begin wealth creation. James Wangunyu, founder and managing director of SIB, highlighted the collaboration’s potential to enhance financial inclusion and align with the government’s bottom-up economic transformation agenda.
The Capital Markets Authority (CMA) granted Safaricom approval to establish Ziidi MMF as a Collective Investment Scheme (CIS) in November 2024. This regulatory backing ensures the fund operates within established financial guidelines, providing transparency and security for investors.
How Money Market Funds Work
Money Market Funds invest in short-term, low-risk debt instruments such as treasury bills and interest-earning accounts. These funds offer high liquidity and minimal risk, making them an attractive option for conservative investors seeking steady returns.
Read Also: Mudavadi Dismisses Opposition’s Demands for Ruto’s Resignation
Safaricom plans to expand its portfolio of financial solutions to further enhance customer financial health. By leveraging the convenience of M-Pesa, Ziidi positions itself as a simple and accessible investment platform for Kenyans. The company’s press release reaffirmed its commitment to driving financial inclusion and wealth creation.
As of January 2025, Ziidi MMF has set a strong foundation with its impressive adoption rate and robust asset base. Safaricom’s innovative approach and strategic partnerships position it to make significant strides in the investment landscape, catering to a diverse customer base.
