Safaricom’s newly launched Ziidi Money Market Fund (MMF) has quickly gained traction, amassing over KES 6 billion ($46 million) in investments within months of its debut.
The fund, officially unveiled on March 7, 2025, during M-PESA’s 18th-anniversary celebrations, allows users to save and earn interest directly through their M-PESA wallets, targeting Kenya’s growing demand for accessible investment options.
Ziidi MMF, a collaboration between Safaricom, Standard Investment Bank, and ALA Capital, enables contributions starting at KES 100, with a daily limit of KES 500,000.
The fund, regulated by the Capital Markets Authority (CMA), offers free deposits and withdrawals, positioning it as a convenient tool for financial growth.
Safaricom CEO Peter Ndegwa hailed the launch as a step toward financial inclusion, stating, “Ziidi MMF reflects our commitment to making wealth creation simple and accessible to everyone.”
However, the fund has faced scrutiny over its interest rates, which reportedly dropped from an initial 11% to 7.37% annually.
Some users have expressed disappointment, alleging that the declining rates and high M-PESA transaction fees undermine its appeal.
“The interest started strong but has deteriorated below 8%—it’s not as profitable as advertised,” one user noted.
Safaricom has yet to address these concerns officially, though experts attribute the rate decline to falling yields on government securities.
Despite the criticism, Ziidi has recorded over one million sign-ups since its public rollout in December 2024, signalling robust interest in the product.
The fund’s managers emphasize its low-risk nature, investing in short-term, high-quality debt instruments like treasury bills.
As Kenya’s investment sector grows—total assets under management reached KES 254 billion ($1.9 billion) in June 2024 per CMA data—Ziidi MMF aims to cement its place in the competitive money market landscape.
