TL;DR
- Safaricom has officially launched its Ziidi Money Market Fund (MMF). following CMA approval in November 2024.
- Ziidi allows you to invest funds from your M-PESA wallet, earn daily interest, and grow your wealth conveniently.
- You can join through the M-PESA menu or by dialing #334#. Deposits and withdrawals are free.
- Genghis Capital has accused Safaricom of breaching agreements tied to the Mali MMF, while Genghis also faces a KES 355 million debt dispute.
Safaricom has today officially launched its Ziidi Money Market Fund (MMF).
This new service comes after the Capital Markets Authority (CMA) granted approval in November 2024 for Safaricom to establish Ziidi as a Collective Investment Scheme (CIS).
The move underscores Safaricom’s focus on expanding its footprint in financial services while promoting financial inclusion.
What is Ziidi?
Ziidi is a unit trust investment platform that enables you to manage, grow, and control your finances conveniently.
Using the Ziidi MMF, you can invest funds from your M-PESA wallet and earn interest, which accrues daily.
According to Safaricom, Ziidi has already gained traction since its public rollout in December 2024, with over 450,000 customers signed up and assets under management exceeding KES 2.85 billion.
“Safaricom (NSE: SCOM) in partnership with two fund managers; Standard Investment Bank and ALA Capital Limited has today announced the official launch of Ziidi MMF, a money market fund that leverages the convenience of M-PESA to give customers a simple, faster and smarter way to invest and grow wealth,” Safaricom said in a press release.
The MMF is regulated by the CMA and managed by professional fund managers. Safaricom emphasizes that Ziidi is part of its mission to make investments accessible and straightforward, empowering more Kenyans to participate in wealth creation.
How Ziidi Works
Ziidi allows you to deposit money from your M-PESA wallet into your Ziidi account.
These funds are pooled into a unit trust, enabling Safaricom’s fund managers to invest in high-quality, short-term debt securities.
The platform offers free deposits and withdrawals via M-PESA, high liquidity, and relatively low risk. Interest on your investments is calculated daily and credited to your Ziidi wallet, ensuring consistent growth for your funds.
How to Join Ziidi
You can register for Ziidi through two primary methods:
- M-PESA Menu:
- Open the M-PESA menu on your phone.
- Navigate to “Financial Services” and select “Ziidi MMF.”
- Follow the prompts to complete the registration process.
- Deposit funds from your M-PESA wallet into your Ziidi account.
- USSD Code:
- Dial #334# on your phone.
- Choose the option for “Ziidi MMF.”
- Follow the step-by-step instructions to register and deposit funds.
Safaricom vs. Mali MMF
The launch of Ziidi comes against the backdrop of a dispute with Genghis Capital over Mali, Safaricom’s earlier MMF.
Genghis Capital, which partnered with Safaricom to pilot Mali, has accused Safaricom of breaching their agreement by launching Ziidi with new partners.
Genghis contends that Mali was their intellectual property and had been introduced through the CMA’s regulatory sandbox in 2019.
Safaricom, on the other hand, has shifted to working with Standard Investment Bank and ALA Capital Limited to manage Ziidi, effectively sidelining Genghis.
The case underscores ongoing tensions in Safaricom’s transition to broader financial services.
Adding to Genghis Capital’s challenges, a South African businessman has instructed auctioneers to seize its office equipment over a debt of approximately KES 354.55 million.
Items up for auction include office furniture, laptops, and other equipment. Genghis Capital has sought court intervention to halt the auction.
This legal and financial trouble has placed Genghis Capital in a precarious position as it continues its legal battle against Safaricom regarding Mali.
Frequently Asked Questions About Ziidi
What is Ziidi MMF?
Ziidi MMF is a money market fund by Safaricom that enables you to earn interest by investing funds from your M-PESA wallet into your Ziidi account.
What is the minimum investment amount?
You can start investing with as little as KES 100.
Are deposits and withdrawals free?
Yes, you can deposit and withdraw funds from Ziidi at no cost via M-PESA.
How do I track my investments?
You can monitor your portfolio and earnings directly through the M-PESA app or by using the USSD menu.
Is Ziidi regulated?
Yes, Ziidi is regulated by the CMA and managed by licensed fund managers.
With its user-friendly structure and emphasis on accessibility, Ziidi by Safaricom provides an opportunity for you to grow your finances with minimal effort.
For those seeking a convenient investment solution, this new MMF might be worth exploring.