Safaricom has officially launched the Ziidi Money Market Fund (MMF), a unit trust investment product designed to make saving and wealth creation accessible to all Kenyans. Powered by M-PESA and managed in partnership with Standard Investment Bank (SIB) and ALA Capital Limited, Ziidi promises to simplify investing with free deposits, flexible withdrawals, and transparent daily interest tracking.
Since its soft launch in December 2024, Ziidi has attracted over 450,000 users and amassed KES 2.85 billion in assets under management, signaling its appeal to a broad customer base.
What Ziidi Offers: Simple, Smart, and Accessible Investments
Ziidi MMF allows customers to seamlessly invest as little as KES 100 directly from their M-PESA wallets. Interest is accrued daily and credited to the userโs Ziidi account, allowing for consistent growth over time. With no maximum investment limit, users enjoy the freedom to grow their wealth without restrictions, provided they stay within M-PESAโs transaction limits of KES 500,000 daily and KES 250,000 per transaction.
Key features of Ziidi include:
- Daily Interest Visibility: Users can track interest earned on their investments in real-time, fostering transparency and trust.
- Free Transactions: Deposits to and withdrawals from the Ziidi account are free of charge.
- Lock Funds Feature: Users can lock portions of their funds to avoid unplanned withdrawals. Locked funds are accessible after 72 hours of unlocking.
- Ease of Access: Customers can join Ziidi via the M-PESA App or by dialing *334*5#.
Safaricomโs Vision for Ziidi
Safaricom CEO, Dr. Peter Ndegwa, described Ziidi as part of the companyโs commitment to driving financial inclusion and expanding M-PESA beyond payments.
โZiidi ni Ziidi introduces the mindset that a little goes a long way, empowering people to define prosperity on their own terms and make wealth creation achievable for all,โ Dr. Ndegwa said during the launch.
Partner fund managers expressed confidence in Ziidiโs potential to deliver value. James Wangunyu, Founder and Managing Director of SIB, pledged market-leading returns, while Sean Gichuru, Chief Investment Officer at ALA Capital, emphasized the broader economic impact Ziidi could have by aligning with Kenyaโs bottom-up economic transformation agenda.
Early Success and Broad Appeal
Ziidiโs rapid adoption reflects its appeal to Kenyans seeking a simple and secure way to grow their wealth. The productโs features, such as daily interest tracking, free transactions, and the ability to lock funds, have resonated with a wide audience. With its integration into M-PESA, the product is easily accessible, bridging the gap between traditional investments and digital convenience.
Dr. Ndegwa concluded the launch with a call to action:
โWe invite every Kenyan to take the first step towards wealth creation. Let Ziidi MMF be the catalyst for a future where every Kenyan can achieve their financial goals.โ
Broader Context: Challenges and Rivalries with Mali
The launch of Ziidi comes against the backdrop of Safaricomโs contentious relationship with Genghis Capital, the fund manager for Mali, an earlier MMF product from Genghis in partnership with Safaricom. While Ziidi has quickly gained traction, Mali has faced operational and reputational challenges that have raised questions about its future.
Similarities Between Ziidi and Mali
Ziidi and Mali share several features:
- Both platforms allow users to invest as little as KES 100.
- Interest is earned daily and credited to user accounts.
- Transactions, including deposits and withdrawals, are free.
- Both offer a locked funds feature, enabling users to restrict access to their funds for financial discipline.
Despite these similarities, Safaricomโs decision to launch Ziidi has highlighted tensions within its MMF strategy.
Infighting Over Mali
Reports surfaced that internal disagreements between Safaricom and Genghis Capital had stalled Maliโs growth. Safaricom reportedly blamed technical challenges for the delays, but Genghis accused Safaricom of sidelining Mali in favor of Ziidi, leading to allegations of unethical practices and breach of agreement.
Maliโs Recent Disruptions
Mali recently experienced a significant outage, during which customers were unable to withdraw their funds. This outage caused panic among users, especially as news broke that Genghis Capitalโs assets were being auctioned over a KES 355 million debt owed to a South African businessman. The Capital Markets Authority (CMA) has since stepped in to engage Genghis Capital on resolving its financial challenges as part of its investor protection mandate.
These developments have left Maliโs future uncertain and raised concerns about Safaricomโs ability to manage partnerships effectively.
Customer Trust and Safaricomโs Dual MMF Strategy
The simultaneous operation of Ziidi and Mali initially created confusion among customers. We saw numerous reports of conflicting messagesโsuch as being informed that they cannot join Ziidi while registered with Maliโwhich further muddied the waters. Additionally, some users claimed they were migrated from Mali to Ziidi without consent, raising data privacy concerns.
For Safaricom, the success of Ziidi will depend on its ability to address these concerns, differentiate its offerings, and restore trust in its financial services.
The Path Forward
Ziidiโs launch marks a significant step in Safaricomโs strategy to expand its financial services portfolio and position M-PESA as a comprehensive platform for financial wellness.
As customers weigh their options, Safaricomโs ability to provide clarity, stability, and competitive returns will be critical. The story of Ziidi and Mali underscores the complexities of innovation in Kenyaโs financial ecosystem, where competition and collaboration often collide. With over 450,000 users already on board, Ziidi has the potential to set new benchmarks for digital investments in Kenya.
