Safaricom’s Got a New Trick Up Its Sleeve: Ziidi!

Safaricom is making waves in the Kenyan financial market with its new money market product, Ziidi. This exciting venture, approved by the Capital Markets Authority (CMA), is set to revolutionize how Kenyans invest their money.

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Partnering with top-notch financial institutions like Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, Ziidi aims to make investing accessible to everyone. With over 35 million active smartphones in Kenya, the potential for digital investments is huge.

Ziidi will offer a low-risk, high-reward opportunity for savers to grow their money through investments in government bonds and T-bills. This is especially appealing to those who are tired of low bank interest rates.

This isn’t Safaricom’s first rodeo in the investment arena. Their first money market fund, Mali, launched in 2019, quickly grew to an impressive KES 3 billion ($23 million) by November 2024. Now, Ziidi is poised to build on that success, targeting Kenya’s booming smartphone-wielding population—over 35 million strong and counting.

The beauty of Ziidi lies in its simplicity. With investments possible from as little as KES 100 ($0.77), it breaks down the traditional barriers that have kept many Kenyans away from formal investment channels. Want to invest? Just reach for your phone. Need your money quickly? Instant withdrawals to your M-PESA wallet make it a breeze.

For Safaricom, Ziidi is more than just a new product—it’s a strategic masterstroke. As their traditional telecom revenues face challenges, they’re cleverly expanding their financial services ecosystem. By offering low-risk investments in government bonds and Treasury bills, they’re not just making money; they’re empowering millions of Kenyans to take control of their financial futures.

The numbers tell a compelling story. M-PESA, Safaricom’s mobile money service, has already generated a staggering KES 77.22 billion ($596 million) in just six months. With Ziidi, they’re set to capture an even larger slice of Kenya’s financial services pie, all while supporting the government’s financial inclusion goals.

So, whether you’re a young professional in Nairobi, a small business owner in a rural town, or someone who’s never considered investing before, Ziidi is ready to welcome you into the world of smart, accessible finance. The future of investing in Kenya just got a whole lot more exciting!

Here’s what it means for you:

1. Increased investment options: You’ll have another avenue to grow your money through low-risk investments.
2. Enhanced financial inclusion: Ziidi makes investing more accessible, especially for those who might not have traditional banking access.
3. Potential for higher returns: While money market funds are generally low-risk, they can offer better returns than traditional savings accounts.
4. By investing in a money market fund, you can diversify your portfolio and reduce risk.

Source; Capital Markets Authority.

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