Table of Contents
Key Points
- Safaricom secures CMA approval to launch Ziidi Money Market Fund, expanding its financial services and deepening financial inclusion.
- Ziidi leverages M-PESA, offering secure, low-risk savings for unbanked populations, backed by leading fund managers.
- Despite mixed H1 2025 results, Safaricom’s revenue grew 15.07%, showcasing robust service growth amid forex challenges.
Safaricom, East Africa’s largest telecom operator, led by Kenyan tycoon Peter Ndegwa, has received approval from the Capital Markets Authority (CMA) to launch its second investment fund, the Ziidi Money Market Fund.
This move is part of a broader strategy to expand its financial services outfit and foster greater financial inclusion across the country. The approval marks a significant step in the ongoing diversification into investment management, following the success of its first fund, MALI, launched in 2020.
Ziidi offers Kenyan investors secure, low-risk savings options with higher yields than traditional bank accounts, aiming to address the growing savings gap. "Ziidi will provide safer, more rewarding investment opportunities,” Safaricom said.
Money market fund address savings gap
Positioned as a safe and attractive alternative to conventional banking, Ziidi targets individuals seeking better returns than those offered by traditional bank savings accounts. The fund’s low-risk nature and diversified portfolio make it an appealing option for cautious investors.
Safaricom’s extensive network, including its nearly ubiquitous mobile money service, M-PESA, provides a strong platform to reach underserved populations, further supporting the company's long-term goal of increasing financial inclusion.
“Safaricom’s latest innovation is set to drive growth in Kenya’s capital markets while expanding access to secure investment opportunities,” said Wycliffe Shamiah, CEO of CMA. The fund’s success is bolstered by partnerships with leading fund managers such as Standard Investment Bank, ALA Capital, and Sanlam Investments, enhancing its credibility and appeal to investors.
Safaricom's ambitious growth strategy
Founded in 1993, Safaricom has evolved from a telecommunications provider into a diversified technology and financial services giant. With its mobile money service, M-PESA, Safaricom has transformed Kenya’s financial landscape, enabling millions of unbanked individuals to access essential financial services.
Under the leadership of Peter Ndegwa, Safaricom has made significant strides in both regional expansion and corporate governance. The company’s entry into Ethiopia has been particularly successful, with its subscriber base surpassing 52 million.
Despite challenges in forex markets and a tough operating environment in Kenya, Safaricom reported a 15.07 percent increase in revenue for H1 2025, reaching Ksh189.42 billion ($1.47 billion). However, the company’s profitability was impacted by the volatile Ethiopian currency and domestic economic conditions.
Safaricom’s latest venture with Ziidi underscores its strategic pivot towards financial services, reinforcing its commitment to innovation and economic empowerment in the region.
