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.

Kenya to tighten rules for crypto firms. The draft Virtual Asset Service Providers Bill, 2025, by the National Treasury requires crypto companies to have a local presence and a Kenyan as CEO.

Key Points

1. Physical Presence Mandatory
   Crypto companies must have an office in Kenya as part of their licensing requirements. This is to protect consumers, the financial system and stability.
2. Local CEOs
   Firms will be required to appoint a Chief Executive Officer approved by regulators such as the Central Bank of Kenya (CBK) or the Capital Markets Authority (CMA) to run the day to day operations. This is similar to the banking and capital markets sectors.
3. Regulatory Oversight
   CMA and CBK will define the eligibility criteria for these positions to ensure experienced people lead local operations.

Other African Countries

Similar regulations already exist in countries like South Africa and Mauritius where virtual asset service providers are required to have a local presence.

Current Gaps in Crypto Regulation

Many crypto companies operating in Kenya, including exchanges, brokers and wallet service providers do not have physical offices or local executives. This new regulation will address these gaps and bring the sector under more scrutiny.

Broader Digital Market Regulation

Kenya’s push for physical presence is not limited to crypto companies.

• In 2023, the Competition Authority of Kenya (CAK) asked food delivery platforms Glovo and Uber Eats to have local offices.
• Social media companies were also asked to have a physical presence to combat platform abuse.

For Crypto Companies

The new rules will increase costs for crypto firms as they will have to:

• Have an office in Kenya.
• Hire local leadership.
• Go through Kenyan regulator approval process.

Going Forward

While the regulations will protect consumers and strengthen Kenya’s financial system, some crypto companies may be deterred by the increased costs. But proponents argue it will bring accountability and make Kenya a more attractive destination for digital finance.

Church leaders in Kenya have been asked to encourage their members to register for the Social Health Authority (SHA). National Assembly Speaker Moses Wetang’ula told clergy to prioritize registration during church services, saying it’s for healthcare development.

Registration During Church

At an interdenominational prayer meeting in Bungoma, Wetang’ula said the SHA is important and asked leaders to register their members every Sunday or Sabbath day. He said it’s free and no hidden costs for Kenyans.

“Register and be part of Taifa Care. It’s free. The money will go to hospitals, doctors and equipment,” Wetang’ula said.

He asked bishops and other church leaders to facilitate the process by appointing someone to oversee registration before church starts.

SHA Benefits

SHA is part of Kenya’s efforts to build healthcare infrastructure and access to quality healthcare. The money will be used for:

• Building and upgrading hospitals.
• Buying modern medical equipment.
• Supporting healthcare workers.

Kenya Kwanza Government

Wetang’ula also assured the Western region will support President William Ruto’s government. He said they will be cooperative, saying the government is working to improve the country as a whole.

“We will not give you headache like the other regions. Carrying a country like Kenya is heavy, but we believe in you,” Wetang’ula said.

He is optimistic about the country under Ruto, acknowledging the legacy issues but commending the steps being taken to address them.

“He will leave Kenya better than he found it because of what he is doing,” he said.

Endnote

Wetang’ula’s call shows the government is going all out to mobilize at grassroots level for SHA. The support of religious leaders and their members will be key to achieving the programme’s goals so that every Kenyan benefits from healthcare.