Safaricom Unveils New Money Market Fund Ziidi after Mali Dispute
Kenya’s telecommunications giant, Safaricom, has received approval from the Capital Markets Authority (CMA) to roll out its second money market fund, Ziidi, which will complement its existing financial offerings on the M-PESA platform.
This move underlines Safaricom’s continued push into the financial services space, leveraging its digital ecosystem to foster savings and investments while promoting financial inclusion.
The Ziidi Money Market Fund will be launched in collaboration with three fund managers: Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.
Designed to simplify investment for M-PESA users, the fund aligns with the Kenyan government’s financial inclusion objectives. The Ziidi product follows the success of Safaricom’s first money market product, Mali, introduced in 2019, which has allowed Kenyans to earn a competitive 10% annual return on investments as low as KES 100 ($0.77). Mali users can deposit and withdraw funds instantly, without additional fees or restrictions, a feature that is expected to extend to Ziidi.
Safaricom has strategically positioned M-PESA as more than a mobile money platform. Over the years, it has evolved into a multifaceted financial hub offering loans, overdrafts, and wealth management solutions. With approximately 30 million active M-PESA users, the platform processes transactions worth over KES 1.5 trillion monthly. Safaricom CEO Peter Ndegwa has emphasized the company’s commitment to growing its portfolio of financial services to support the government’s savings and investment goals.
The introduction of Ziidi comes at a time when traditional banks are reducing interest rates on savings, leaving a gap for more accessible and higher-yielding financial products. While the precise details of Ziidi’s returns are yet to be disclosed, analysts believe the fund will offer competitive rates to attract users currently underserved by banks.
Safaricom’s collaboration with licensed fund managers ensures compliance with CMA regulations and instills trust among users. By leveraging the expertise of Standard Investment Bank, ALA Capital, and Sanlam Investments, Ziidi aims to provide a seamless, user-friendly experience. The integration of Ziidi with M-PESA also demonstrates the telco’s ambition to create a one-stop digital financial ecosystem.
However, while Safaricom’s venture into wealth management is a natural extension of M-PESA’s capabilities, it comes with challenges. Regulatory scrutiny remains a significant factor, as authorities balance innovation with consumer protection. Additionally, Safaricom must educate potential users about the benefits of money market funds, as financial literacy levels in Kenya remain relatively low. However, the opportunity to tap into Kenya’s low national savings rate offers vast growth potential.
