Ziidi Fund Debut Sparks Confusion as Mali Users Face Contradictory Messages on M-Pesa

Update: Ziidi is expected to launch this December. The two – Mali and Ziidi – are expected to be different apps and services.

Safaricom’s introduction of the Ziidi Money Market Fund, a newly approved Collective Investment Scheme (CIS), has left customers confused and concerned. While both Ziidi and Safaricom’s earlier money market product, Mali, are now listed on the M-Pesa app, the lack of official communication from the telco has sparked widespread speculation and frustration among users.

Mali and Ziidi: Coexistence or Replacement?

Safaricom’s Mali was launched in 2022 in partnership with Genghis Capital Limited and quickly gained popularity, accumulating an asset base of KES 2.3 billion by August 2024. It allowed users to easily invest small amounts and earn daily interest directly from the M-Pesa app. However, the introduction of Ziidi, which is managed in partnership with Standard Investment Bank (SIB), ALA Capital Limited, and Sanlam Investments East Africa Limited, has raised questions about the future of Mali.

While Safaricom has not officially stated whether Ziidi is replacing Mali or will coexist alongside it, the M-Pesa app interface has fueled speculation. Mali has been pushed to the bottom of the “Financials” section, while Ziidi is prominently featured on the homepage. Mali’s branding has also reverted to its original blue color, adding to the perception that it may be de-emphasized.

Adding to the confusion, a recent Business Daily report cited infighting between Safaricom and Genghis Capital over the ownership of Mali. This conflict is believed to have prompted Safaricom to partner with new fund managers for Ziidi. However, there has been no official word from Safaricom about how these changes will affect Mali’s users or their investments.

Contradictory and Confusing User Experiences

The rollout of Ziidi has been marred by contradictory messages and technical glitches on the M-Pesa app, leaving customers unsure about the status of their investments. Users have reported vastly different experiences:

• Forced Migration to Ziidi: Some Mali users have received SMS notifications informing them that their investments have been automatically moved to Ziidi. One message states:

"Thank you for investing with us. You will now access your investments on the Ziidi App. Same product & great experience. Go to Ziidi on M-Pesa App or *334#."

• Error Messages: Others attempting to access Mali or Ziidi have encountered error messages. For instance, some users are told they cannot opt into Ziidi while still registered with Mali.

“You’re currently registered with Mali. Unfortunately, you cannot opt in to Ziidi while your Mali registration is active.”

• Access Issues: Some users can still access and manage their funds on Mali, while others report that Mali appears to be non-functional for them, with their funds seemingly migrated to Ziidi without their consent.
• “Coming Soon” Notices: Some customers opening the Ziidi section on the M-Pesa app see a “Coming Soon” message, despite the fund already being live for others.

The inconsistent experiences have created a sense of mistrust among users, with many taking to social media to express their frustrations.

Major Concerns and Unanswered Questions

1. Lack of Communication:
   Safaricom, as Kenya’s leading telecommunications provider, has not issued any official statement clarifying the relationship between Mali and Ziidi, the reasons behind the forced migrations, or the status of users’ investments. For a financial product, this lack of transparency is highly unusual and concerning.
2. Data Privacy and Consent:
   The automatic migration of users from Mali to Ziidi without explicit consent raises serious data privacy and governance issues. Customers entrust Safaricom with their financial data, and such unilateral actions may violate consumer protection norms.
3. Impact of Infighting:
   The Business Daily report highlights ownership disputes between Safaricom and Genghis Capital over Mali. If these disputes led to the creation of Ziidi, how will Safaricom ensure continuity and protection for Mali’s investors? What happens to the KES 2.3 billion in assets under Mali’s management?
4. Inconsistent App Messaging:
   The contradictory messages displayed on the M-Pesa app, ranging from error notices to “Coming Soon” messages, suggest a rushed rollout of Ziidi. This poor user experience undermines Safaricom’s reputation and leaves customers questioning the stability of their investments.
5. Perception of Mismanagement:
   For some, the situation appears to be a simple rebranding effort. For others, it reflects a deeper issue of mismanagement and a lack of coordination between Safaricom and its fund managers. Such confusion could erode trust in Safaricom’s financial services offerings.

What Should Safaricom Do Next?

To restore customer confidence and address the mounting concerns, Safaricom needs to take immediate action:

1. Issue an Official Statement:
   Safaricom must clarify whether Mali and Ziidi are meant to coexist or if Ziidi is a replacement for Mali. Transparency about the reasons behind the transition, the differences between the two funds, and how investments are being managed is essential.
2. Ensure Consent and Privacy:
   Any migration of users or their funds should be conducted with explicit consent, clear explanations, and a seamless user experience. Safaricom should also reassure users about the security and privacy of their financial data.
3. Improve Communication on the App:
   The M-Pesa app should provide consistent and accurate messages about the status of both Mali and Ziidi. Users should not have to rely on social media for updates on their financial products.
4. Address Technical Glitches:
   The technical issues affecting access to both Mali and Ziidi must be resolved promptly to ensure that all users can manage their investments without disruptions.
5. Clarify the Role of Partners:
   Safaricom should outline how the new partnerships with SIB, ALA, and Sanlam will benefit Ziidi investors and how these partnerships differ from the Mali-Genghis collaboration.

Final Thoughts

Safaricom’s introduction of the Ziidi Money Market Fund should have been a moment to celebrate innovation in Kenya’s financial services. Instead, the lack of communication, forced migrations, and technical glitches have left users feeling alienated and distrustful. As the situation unfolds, Safaricom’s next steps will be critical in determining whether it can maintain its reputation as a trusted provider of financial solutions.

For now, the confusion surrounding Mali and Ziidi serves as a cautionary tale about the importance of transparency and user-centered communication in the rollout of financial products.