Safaricom’s Ziidi Money Market Fund (MMF) has quickly gained traction, reaching $22.03 million (KES 2.85 billion) in assets under management within a month of launch, with over 450,000 users onboarded.
This was revealed by Safaricom at the official launch of the fund following a pilot that commenced in December 2024. Safaricom has partnered with Standard Investment Bank (SIB) and ALA Capital Limited to operate the fund.
Ziidi MMF is a unit trust product that enables customers to earn daily interest by investing funds directly from their M-PESA wallets. It is accessible to millions of M-PESA customers, allowing them to invest as little as KES 100 (less than $1) and earn daily interest.
While there is no maximum investment cap, the fund adheres to M-PESA’s transaction limits:
- KES 500,000 (~$3,871) daily limit
- KES 250,000 (~$1,935) per transaction limit
The official launch of Ziidi has overshadowed Mali, the telco’s initial money market fund introduced in 2019. This provided 10% annual interest (earned daily) return subject to interest withholding taxes.
Introducing Mali, a New Investment Tool by Safaricom, Powered by MPESA https://t.co/KUIpL84doA via @Bitcoin KE
— Doctor Who (@Wanjala) December 11, 2019
According to local reports, Mali was a partnership between Safaricom and local fund manager, Genghis Capital. The two companies began piloting Mali as a unit trust in 2019 while awaiting a fund manager license.
“Ziidi MMF is part of our efforts to diversify M-PESA beyond payments and promote financial wellness,” said Safaricom CEO, Peter Ndegwa, during the launch.
“As we launch Ziidi MMF, we are making an invitation to every Kenyan, irrespective of their financial standing, to take the first step towards wealth creation.”
The move to officially launch Ziidi comes after local wealth-tech startup, Ndovu also launched its new Money Market Fund (MMF) in October 2024, called the Ndovu Fund, aimed at providing accessible and diverse investment options for everyone.
🇰🇪REGULATION | Kenyan Wealth-Tech Startup, Ndovu, Launches Money-Market Fund Following Regulatory Approval
Interestingly, Ndovu lists ‘Kings of Blockchain’ as one of its investment funds which reportedly achieved an impressive return of over 98% in just 12 months as of December… pic.twitter.com/5u7fSyHSKG
— BitKE (@BitcoinKE) October 2, 2024
For many low-and-middle-income Kenyans, traditional investment avenues have often been inaccessible due to high entry barriers and limited financial literacy. However, the landscape is shifting as alternative investment options become more prevalent. Cryptocurrencies, for instance, have become popular among the youth, offering flexibility and accessibility that appeal to those seeking financial stability.
[TECH] REPORT | IMF Advises the Capital Markets Authority of Kenya to Create Predictable Regulatory Framework for the Crypto market: The International Monetary Fund (IMF) has recommended that Kenya establish.. https://t.co/a97RZFJX0s via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) January 10, 2025
Similarly, money market funds are emerging as viable options, allowing individuals to invest with minimal amounts and earn daily interest, thereby promoting a culture of saving and investment among younger demographics.
“By combining our institutional synergies with Safaricom, we hope to provide an attractive investment portfolio, which will, in turn, enhance financial inclusion among low-and-mid-income earners in line with the government’s bottom-up economic transformation agenda,” said James Wangunyu, SIB’s Founder and Managing Director.
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