Safaricom’s new financial product, Ziidi Money Market Fund (MMF) is now live with Sh2.85 billion in assets under management since the December pilot. It’s available to all Safaricom’s M-Pesa customers and you can invest as little as Sh100 and earn daily interest.
Ziidi MMF Key Features
Ziidi gives you a convenient way to grow your wealth using the M-Pesa platform. Here’s what you get:
- Low entry point: Sh100.
- Daily visibility: You can see your daily interest earnings.
- Transaction limits: Daily investment limit is Sh500,000 with a per-transaction limit of Sh250,000.
- Flexibility: Free deposits into Ziidi accounts and withdrawals to M-Pesa wallets.
With over 450,000 customers, Ziidi is a testament to Safaricom’s growing presence in the Kenyan financial landscape, using its digital platform to drive financial inclusion.
Compared to Mali MMF
Ziidi replaces Safaricom’s earlier MMF product, Mali, which faced operational challenges due to disputes with its partner Genghis Capital. Mali was launched in 2019 and had Sh2.3 billion by March 2023 but was still in the pilot phase and is now a closed fund, no new investors.
But Ziidi is managed by Standard Investment Bank (SIB) and ALA Capital Limited for compliance and scalability. Safaricom’s CEO, Peter Ndegwa said Ziidi is in line with the company’s vision of empowering Kenyans to create wealth.
What is a Money Market Fund?
A Money Market Fund (MMF) is a low risk mutual fund that invests in short term debt instruments such as treasury bills, government bonds and interest earning accounts. MMFs are for investors who want stability and liquidity and returns.
Ziidi’s role in Financial Inclusion
Ziidi’s launch is in line with the Kenyan government’s bottom-up economic transformation agenda to empower low and middle income earners. By being on M-Pesa, Ziidi reduces the entry barriers and makes wealth creation accessible to a wider demographic.
James Wangunyu, founder and managing director of SIB, said the partnership is to provide investment opportunities to underserved segments of the population.
What’s next for Ziidi?
As Safaricom expands its financial services, Ziidi’s success shows the potential of digital platforms to democratise investments. With its customer centric features and robust partnerships, Ziidi is set to shape the future of money market investments in Kenya.
For M-Pesa users, Ziidi represents an opportunity to transition from savings to structured investments, promoting long-term financial growth.