All You Need to Know About Safaricom’s MMF: Ziidi

Money Market Funds have increasingly gained popularity among Kenyans. Recognising this growing demand, Safaricom, Kenya’s leading telecom giant, has unveiled the Ziidi Money Market Fund (MMF). 

Ziidi is a groundbreaking collective investment scheme approved by the Capital Markets Authority (CMA).

This move follows Safaricom’s earlier attempt with the Mali fund, which faced governance concerns due to ownership disputes. However, the Ziidi MMF sets a new standard, underscoring Safaricom’s commitment to financial innovation and inclusion. 

According to Wyckliffe Shamiah, CMA’s CEO, the approval of Ziidi MMF reflects the authority’s dedication to fostering innovation while enabling Safaricom to expand its footprint in financial services.

Piloted in December 2024, the Ziidi MMF has already achieved remarkable success, pooling over Ksh2.85 billion in assets under management from more than 450,000 customers. This success is attributed to strategic partnerships with Standard Investment Bank (SIB), and ALA Capital Limited, who will handle fund management.

Speaking at the Ziidi launch, Safaricom CEO Peter Ndegwa emphasized that the Ziidi MMF is part of Safaricom’s ongoing efforts to expand M-Pesa beyond payments and financial wellness. He reiterated the company’s mission to make wealth creation possible for all Kenyans, regardless of their financial standing.

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What is Ziidi Money Market Fund?

Ziidi MMF is a collective investment scheme that allows investors to pool their resources and invest in low-risk financial instruments. Designed as a unit trust, it offers competitive returns with daily interest accrual. 

Customers can conveniently fund their accounts through their M-Pesa wallets. This simplifies the process of investing, making wealth creation accessible to all Kenyans.

Key Features of Ziidi MMF

Low Minimum Investment

You can start investing in Ziidi MMF with as little as Ksh100. In addition, there is no maximum investment limit in Ziidi. However, the daily transaction limit of Ksh500,000 and Per transaction limit of Ksh250,000 still apply.

Instant Access to Funds

You can make deposits or withdrawals instantly through your M-Pesa Wallet. Unlike other MMFs, you don’t have to wait for days or hours for transactions to be processed. Additionally, you have an unlimited number of withdrawals in a day.

Daily interest and Zero Fees

You earn a competitive daily interest that rivals traditional savings accounts. In addition, the fund offers free withdrawals and deposits.

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Security and Transparency

Your Ziidi account is protected by your M-Pesa PIN, with each transaction requiring PIN verification. You can easily track your daily earnings and the performance of your investment.

How to Register for Ziidi MMF

To register for the Ziidi MMF, you must first have an active M-Pesa account, as this is an eligibility requirement set by the fund managers.

If you already have an M-Pesa account, you can easily access the MMF via the M-Pesa app or by using a USSD code.

Using the M-Pesa App

·       Download the M-Pesa App and Log in

·       Navigate to the ‘Grow’ tab

·       Select ZIIDI and ‘OPT IN’

Using USSD

·       Dial *334# on your phone

·       Select option 5- financial services

·       Select option 1- ZIDII

·       OPT-IN

Once you opt-in, you will be prompted to key in your personal information. You should carefully read the terms and conditions to understand your rights and responsibilities as an investor.

You will then receive a confirmation message that indicates if your registration was successful.

After successful registration, start making deposits into the funds using the M-Pesa Wallet. And monitor your investments by dialing *334#.

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Why Invest in Ziidi MMF

Low-Risk, High-Security Investment

Generally, MMFs are low-risk investments. However, Ziidi MMF offers a more secure investment option that is backed by credible fund managers regulated by Capital Markets authority.

High Liquidity and Flexibility

It offers instant access to your funds. Therefore, you can easily withdraw your money, for free, whenever you need it without waiting for long processing periods. Additionally, you can invest as low as Ksh100.

Accessibility

The MMF integrates well with M-Pea making it easy for users to manage their investment through their mobile phone.

This makes it perfect for building an emergency fund and saving for short-term goals.

Frequently Asked Questions (FAQs)

1. Can non-M-Pesa users invest in Ziidi?

No, the fund is only open to M-Pesa users at the moment.

2. Are there fees or taxes associated with investing in Ziidi?

The funds offer free deposits and withdrawals. However, they have a fund management fee of 2% interest per annum. The 2% applies on interest earned, not on the principal. The interest gained through this investment is also subject to a 15% withholding tax.

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3.     What happens to my investment if I change my phone number?

If you change your phone number or SIM card, you have to update your M-Pesa details promptly. You may have to verify your identity again to access your Ziidi Account.

4. Who is eligible to invest in Ziidi MMF?

Anyone with an active M-Pesa Account. Remember, the minimum investment amount is Ksh100.