Safaricom remains silent about its first money market fund, Mali, which was launched in 2020, while promoting Ziidi, its new fund. Ziidi received regulatory approval in November 2024 and has reportedly attracted over one million users. However, allegations of customer migration from Mali and technical issues raise concerns about Mali’s future amidst these transitions.
Safaricom, Kenya’s leading telecommunications company, has not disclosed any information regarding the status of its initial money market fund, Mali, which was launched in 2020. Instead, the company is focusing on promoting Ziidi, a recently introduced fund that has generated controversy by leaving customers uncertain about Mali’s future while prompting users to transition to Ziidi.
Ziidi, which received regulatory approval in November 2024, is a collaboration among Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited. Despite its promising start, the fund’s launch has faced backlash, especially as allegations surfaced that customers were transferred from Mali without proper consent, igniting a dispute with Mali’s fund manager, Genghis Capital.
Safaricom reported during a media briefing celebrating M-PESA’s 18th anniversary that Ziidi surpassed one million sign-ups and secured over KES 6 billion (approximately $46 million). However, Genghis Capital accused Safaricom in December 2024 of inducing a liquidity crisis aimed at triggering withdrawals from Mali amid ongoing ownership challenges regarding the fund.
Additionally, the situation deteriorated when Mali dealt with significant technical issues from late December 2024 into January 2025, preventing customers from withdrawing funds or registering. While new registrations for Mali remain suspended, Ziidi continues to operate, leading to speculation regarding the potential discontinuation of the Mali fund.
Both money market funds can still be accessed through Safaricom’s M-PESA application. Multiple attempts to elicit responses from Safaricom and Genghis Capital concerning these issues were unsuccessful. By September 2024, Mali was managing KES 3.1 billion (approximately $24 million) in assets, ranking as the 17th largest collective investment scheme in Kenya, while generating KES 11.6 million ($89,000) for Safaricom during the first half of the year.
Investment funds in Kenya are experiencing considerable growth, with total assets under management increasing by 13% to KES 254 billion ($1.9 billion) as of June 2024. Money market funds remain particularly popular, representing KES 171.2 billion ($1.3 billion) or 67.4% of the overall investments, with the remainder divided among fixed-income, equity, and other asset categories.
In conclusion, Safaricom’s silence regarding the Mali fund amid the aggressive marketing of Ziidi raises concerns among investors and customers. As legal disputes unfold and technical failures hinder customer access to Mali, the market landscape continues to shift. With a growth trajectory in Kenya’s investment sector, stakeholders are closely monitoring how these developments will influence the future of money market funds.
Original Source: techcabal.com
