Telecommunications giant Safaricom PLC launched its Money Market Fund, following approval from the Capital Markets Authority (CMA) to establish the fund dubbed Ziidi last year.
In November 2024, CMA announced that it had granted Safaricom approval to establish the Ziidi Money Market Fund as a Collective Investment Scheme (CIS).
The product enables customers to manage, grow, and control their finances and wealth, offering free deposits and withdrawals through their M-PESA wallet.
Following the CMA approval, Safaricom on January 21, 2025, officially launched the Ziidi Money Market Fund (MMF) in collaboration with two fund managers.
“Safaricom (NSE: SCOM) in partnership with two fund managers; Standard Investment Bank and ALA Capital Limited has today announced the official launch of Ziidi MMF, a money market fund that leverages the convenience of M-PESA to give customers a simple, faster and smarter way to invest and grow wealth,” reads part of the press release.
The Ziidi MMF is a unit trust that allows customers to earn interest by investing funds from their M-PESA wallet into the Ziidi account.
Interest is accrued daily to the Ziidi wallet, enabling investors to grow their money and generate more value over time.
According to the telecommunications company, the Ziidi MMF has attracted over 450,000 opt-ins since its public launch in December 2024 with assets under management exceeding Ksh2.85 billion.
“The fund is regulated by the Capital Markets Authority (CMA) and managed by a pool of fund managers. The launch speaks to Safaricom’s commitment to drive financial inclusion, making investments and wealth creation simple and accessible to everyone,” the press release adds.
How Ziidi Money Market Fund works
A money market fund is a mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. These funds are designed to offer investors high liquidity and minimal risk.
Key characteristics of money market funds include high liquidity, allowing investors to quickly and easily access their funds, and low risk, as they invest in short-term, high-credit-quality debt securities, which helps minimize the likelihood of default.
Customers can easily opt-in to Ziidi MMF on the M-PESA app or through USSD by dialing the short code *334*5#.
Upon opt it, customers can immediately start investing.
The MMF offers customers visibility of the daily interest rate earned, making investing and growing money simple, transparent, and worry-free.
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While there is no maximum investment limit in the fund, the daily M-PESA transaction limit of Ksh500,000 and the per-transaction limit of Ksh250,000 will apply.
Recognizing the importance of flexibility, the fund offers customers free deposits to the Ziidi MMF account and withdrawals into their M-PESA wallets, giving users the freedom to manage their funds according to their financial needs.
“With as little as Ksh100, customers can opt-in and begin their investment journey on Ziidi MMF,” added Safaricom.
Safaricom gets approval
Customers also have the option to lock funds to avoid unplanned withdrawals.
In addition to the Ziidi Money Market Fund, Safaricom said it plans to innovate and build more solutions that cater to the varied needs of the customers.
The announcement from Safaricom follows the CMA’s decision to grant the company permission to establish the Ziidi MMF as a Collective Investment Scheme in a statement on November 27, 2024.
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Wycliffe Shamiah, the Chief Executive Officer of the CMA, emphasized that this milestone underscores the authority’s commitment to fostering innovation within the financial sector, enabling Safaricom to expand its footprint in the financial services industry.
Furthermore, the CMA highlighted that the MMF aims to empower investors by providing accessible, diversified investment options, contributing to the broader National Government’s financial inclusion strategy.
“This move represents a significant step forward in innovation for the company,” CMA announced.
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