Kenya’s Capital Markets Authority (CMA) has approved Safaricom’s second money market product, Ziidi, marking a significant milestone in Kenya’s financial inclusion journey. Offered in partnership with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, Ziidi responds to the growing demand for accessible and digital-first investment opportunities in Kenya’s fast-evolving financial landscape.
Following the success of its first money market fund, Mali, launched in 2019 with Genghis Capital, Safaricom continues to expand its presence in the investment sector. Mali has grown to an asset base of KES 3 billion ($23 million) as of November 2024, demonstrating strong demand for digital investment products among Kenyans. Ziidi aims to build on this foundation by targeting Kenya’s growing retail investment market, leveraging Safaricom’s extensive network and the country’s increasing smartphone adoption.
Ziidi will provide low-risk investment options by channeling money market deposits into government bonds and Treasury bills. This product is particularly appealing to savers seeking alternatives to traditional bank rates. By integrating Ziidi into its mobile money platform, M-PESA, Safaricom aims to reach Kenya’s unbanked and underbanked populations, further driving financial inclusion while diversifying its revenue streams beyond telecom services.
The adoption of mobile technology in Kenya has created a fertile ground for innovative financial products like Ziidi. With over 35 million active smartphones in the country, compared to 30 million feature phones, the digital economy is expanding rapidly. Safaricom’s M-PESA, which generated KES 77.22 billion ($596 million) in revenue in the first half of 2024, continues to play a central role in the company’s growth and financial inclusion initiatives.
Ziidi offers a seamless investment experience through M-PESA, with details on interest rates and tax obligations expected to be disclosed at its upcoming launch. Drawing from the success of Mali, which allows investments starting from KES 100 ($0.77) and offers instant withdrawals to M-PESA wallets, Ziidi is poised to appeal to a wide range of investors. With competitive fees and low entry barriers, Safaricom is setting a new benchmark for digital investments in Kenya.
This new product underscores Safaricom’s commitment to supporting Kenya’s financial ecosystem by offering innovative solutions that meet the needs of today’s investors. As the company continues to innovate and grow, Ziidi is a testament to its vision of leveraging technology to create inclusive financial opportunities for all Kenyans.
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