Safaricom PLC has officially entered the money market sector through its subsidiary Ziidi Money Market Fund, now licensed by the Capital Markets Authority (CMA).
This development introduces a new investment option that integrates with M-PESA, similar to Safaricom’s other unit trust product, Mali, managed by Genghis Capital.
The fund operates as a Collective Investment Scheme (CIS), offering investors an accessible way to participate in low-risk investment opportunities.
The initiative is a collaboration involving Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.
CMA CEO Wycliffe Shamiah commented that the licensing of Ziidi reflects efforts to drive innovation while expanding Safaricom’s presence in financial services.
Money market funds invest in cash and short-term debt securities with low risk, providing better returns compared to traditional bank savings, which are closely tied to Central Bank rates.
These funds, introduced in the 1970s, have since become a key investment tool.
In Kenya, money market funds dominate Collective Investment Schemes, holding Ksh171.2 billion—67.4% of the market share—for the year ending June 2024. Other funds, including Fixed Income (Ksh52.1 billion), Equity (Ksh2.6 billion), Balanced (Ksh1.4 billion), and others (Ksh26.8 billion), account for the remaining 32.6%.
Safaricom’s venture into this sector signals its continued diversification and commitment to offering value-driven products to its customers.
With Ziidi MMF now in the picture, Safaricom is poised to reshape how Kenyans approach investments through its trusted M-PESA platform.
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