Safaricom, the leading telecommunications company in Kenya, is currently transitioning customers from its first money market fund, Mali, to a newly launched fund called Ziidi. Although Safaricom has not provided much information about the fate of Mali, it has been actively promoting Ziidi, which received regulatory approval in November 2024.
Despite the rollout of Ziidi, there have been controversies surrounding the transition from Mali to Ziidi. This includes a legal dispute with Mali’s fund manager, Genghis Capital, who accused Safaricom of migrating customers without consent and orchestrating a liquidity crisis that affected Mali’s operations.
As of now, Ziidi has reportedly garnered over one million sign-ups and KES 6 billion in funds. Meanwhile, Mali has faced technical issues, hindering some customers from accessing their funds or signing up. The frozen status of Mali for new registrations has led to speculation that it may be phased out in favor of Ziidi.
Both Mali and Ziidi are visible on Safaricom’s M-PESA app. However, Safaricom and Genghis Capital have not provided any comments on the situation. It is worth noting that Mali was previously a significant investment scheme in Kenya, managing assets worth KES 3.1 billion.
According to data from the Capital Markets Authority (CMA), Kenya’s investment funds have been on the rise, with total assets under management increasing to KES 254 billion, with money market funds being the most popular choice, accounting for 67.4% of total investments.