Kenya’s leading telecommunications company, Safaricom, has received regulatory approval from the Capital Market Authority (CMA) to launch its second money market product, Zidi.
The product will be introduced in partnership with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.
Zidi, which will be accessible through the M-PESA platform, aims to simplify investment for subscribers, enabling them to grow their wealth via the capital markets. The fund aligns with Safaricom’s strategy to deepen its presence in the financial services sector and promote financial inclusion.
Wyckliffe Shamiah, CEO of the CMA, hailed the initiative as a testament to fostering innovation in Kenya’s financial landscape. “Zidi Money Market Fund is expected to empower unit holders by offering accessible and diversified investment options as part of the broader National Government’s financial inclusion strategy,” CMA noted in a statement.
Zidi represents Safaricom’s second venture into the money market space, following the successful launch of its first product, Mali, in December 2019. The Mali product, which means “wealth” in Swahili, allows M-PESA users to invest amounts ranging from as little as KES 100 ($0.77) to a maximum of KES 70,000 ($540), offering a competitive annual return of 10%.
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Mali users enjoy the flexibility of instant withdrawals and free deposits, a feature expected to be replicated in the Zidi money market fund. However, Safaricom has yet to disclose the interest rates for Zidi.
The launch of Zidi underscores Safaricom’s ongoing efforts to expand its financial services portfolio, reinforcing its position as a major player in promoting financial inclusion and innovation in Kenya’s capital markets.
