Safaricom has expanded its financial services portfolio by securing a license for its Ziidi Money Market Fund (MMF) from the Capital Markets Authority (CMA).
The new fund, a partnership between Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, will be accessible through the popular M-PESA platform, similar to the existing M-PESA Fund.
Wycliffe Shamiah, CMA’s CEO, said the development, “underscores the commitment to foster innovation which also enables Safaricom enhance its footprint in the finance services sector.”
A Growing Market
Money market funds, which invest in low-risk, short-term debt securities, have gained significant popularity in Kenya.
As of June 2024, MMFs accounted for a substantial 67.4% of the total KSh 171.2 billion invested in Collective Investment Schemes (CIS).
Safaricom’s Strategic Move
Safaricom’s entry into the money market fund market is a strategic move to further diversify its financial services offerings and capitalise on the growing demand for investment products.
By leveraging its extensive customer base and the convenience of the M-PESA platform, the company aims to make investing more accessible to a wider range of Kenyans.
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