Safaricom Unveils Ziidi Money Market Fund to Expand M-Pesa’s Financial Services

Safaricom, Kenya’s leading telecom and mobile money provider, has introduced the Ziidi Money Market Fund (MMF), offering M-Pesa users a new way to invest and grow their wealth. The service allows customers to transfer funds from their M-Pesa wallets into a Ziidi account, where they can earn daily accrued interest on their investments.

Since its public launch in December 2024, Ziidi MMF has attracted over 450,000 users, managing assets worth more than 2.85 billion Kenyan shillings (approximately $22 million). Safaricom CEO Peter Ndegwa emphasized the fund’s role in diversifying M-Pesa beyond payments, fostering financial wellness, and making wealth creation accessible to all Kenyans.

Regulated by Kenya’s Capital Markets Authority (CMA), the fund is managed by financial firms Standard Investment Bank and ALA Capital Limited. Customers can opt in via the M-Pesa app or USSD, with a minimum investment of KES 100 ($0.77) and no maximum cap, though M-Pesa’s daily transaction limit is KES 500,000 ($3,872). Deposits are free, and withdrawals are made directly to M-Pesa wallets, with an optional lock feature to prevent unplanned spending.

Standard Investment Bank’s founder, James Wangunyu, highlighted the fund’s alignment with Kenya’s bottom-up economic transformation agenda, aiming to enhance financial inclusion for low- and middle-income earners. ALA Capital’s Chief Investment Officer, Sean Gichuru, underscored the fund’s flexibility, allowing Kenyans to manage their investments seamlessly from their mobile devices.

Beyond Ziidi MMF, Safaricom plans to introduce additional financial solutions to strengthen customer financial security. M-Pesa, which generated $1 billion in revenue for the company in the financial year ending March 2024, has evolved from a peer-to-peer transfer service into a comprehensive financial platform offering payments, loans, savings, and business solutions.

Source: Connecting Africa