Safaricom expands mobile investment services with Ziidi money marketSafaricom expands mobile investment services with Ziidi money market

Safaricom, the Kenyan telecoms and mobile money operator, is expanding its M-Pesa investment services by launching the Ziidi money market fund in partnership with fund managers Standard Investment Bank and ALA Capital Limited.

Paula Gilbert, Editor

January 24, 2025

2 Min Read
Safaricom CEO Peter Ndegwa speaking at a results presentation in Nairobi, Kenya in 2024.
Safaricom CEO Peter Ndegwa speaking at a results presentation in Nairobi, Kenya in 2024. (Source: Safaricom.)

Safaricom, the Kenyan telecoms and mobile money operator, has announced the launch of the Ziidi money market fund (MMF) giving customers an option to invest and grow their wealth using M-Pesa.

Ziidi MMF enables Safaricom customers to earn interest by investing funds from their M-Pesa wallet into the Ziidi account.

"The interest earned is accrued to the Ziidi wallet daily – allowing the investor's money to grow and therefore generate more value," Safaricom said in a statement.

The operator said that since opening to the public in December 2024, Ziidi money market fund has attracted more than 450,000 opt-ins with over 2.85 billion Kenyan shillings (US$22 million) assets under management.

"Ziidi MMF is part of our continued efforts to diversify M-Pesa beyond payments and deepen financial wellness. 'Ziidi ni Ziidi' introduces the mindset that a little goes a long way, and any kind of growth is valuable. This empowers people to define prosperity on their own terms, and make wealth creation achievable to all," said Safaricom CEO Peter Ndegwa.

The fund is regulated by the Capital Markets Authority (CMA) and managed by a pool of fund managers including Standard Investment Bank and ALA Capital Limited.

"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. Together, let's embrace this responsibility and let Ziidi MMF be the catalyst for a future where every Kenyan has the means to wealth creation in their own way," added Ndegwa.

Related:Safaricom enables M-Pesa transfers between Kenya, Ethiopia

Customers can opt-in to Ziidi MMF on the M-Pesa app or via USSD and can invest anything from KES100 ($0.77) upwards.

While there is no maximum investment limit in Ziidi MMF, the daily M-Pesa transaction limit is KES500,000 ($3,872) and the per-transaction limit is set at KES250,000 ($1,935).

Ziidi MMF offers customers free deposits to the Ziidi MMF account and withdrawals into their M-Pesa wallets. Customers also have the option to lock their funds to avoid unplanned withdrawals.

Financial inclusion objectives

"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, Standard Investment Bank's founder and managing director.

ALA Capital's chief investment officer, Sean Gichuru, said that the solution ensures that Kenyans can achieve their financial goals while enjoying the flexibility of managing their investments directly through their mobile devices.

In addition to the Ziidi money market fund, Safaricom said it plans to innovate and build more solutions that improve financial health and security for customers.

Safaricom's M-Pesa mobile financial services platform has been extremely successful for the operator and contributed $1 billion to its revenue in the financial year ended March 31, 2024.

Over the years M-Pesa has grown from a mobile money service offering peer-to-peer transfers and now offers a range of services including bill payments, loans, savings and business solutions.

Safaricom also launched M-Pesa in Ethiopia in August 2023.

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About the Author

Paula Gilbert

Editor, Connecting Africa

Paula has been the Editor of Connecting Africa since June 2019 and has been reporting on key developments in Africa's telecoms and ICT sectors for most of her journalistic career.

The award-winning South Africa-based journalist previously worked as a producer and reporter for business television channels Bloomberg TV Africa and CNBC Africa, was the telecoms editor at online publication ITWeb, and started her career in radio news. She has an Honors degree in Journalism from Rhodes University.

Paula was recognized by Empower Africa as one of 35 trailblazers who shaped Africa's tech landscape in 2023 and she won the Excellence in ICT Journalism category at the MTN Women in ICT Awards in 2017.

Travel is always on Paula's mind, she has visited 40 countries so far and is currently researching her next adventure.

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