Ziidi Posts Sh784 Million in MMF Profit as Customer Funds Grow to Sh14.6 Billion
Across its portfolio, Ziidi leans on government paper and bank deposits, a mix that continues to support MMF profit growth
Safaricom-owned money market fund Ziidi reported a Ziidi MMF profit of Sh784.28 million in its first 14 months of operation to December 2025, driven by strong uptake and steady returns from invested customer funds.
Financial statements released on Tuesday show the fund, operated through Safaricom and accessible via M-Pesa, generated Sh1 billion in investment income from assets that included Sh14.6 billion in investor deposits.
The product, structured as a unit trust, allows users to move funds from their M-Pesa wallets into an interest-earning account where returns are calculated daily and credited directly to the Ziidi balance.
Investment income carries the fund
The bulk of the Ziidi MMF profit came from investment income against operating expenses of Sh250 million and an expected loss allowance of Sh10.55 million. The fund applies a management fee of 2% per annum on interest earned.
Ziidi allocates customer funds across low-risk instruments, including government securities and deposits with financial institutions. By December 2025, the portfolio breakdown showed:
- Sh7.48 billion in call deposits
- Sh4.51 billion in deposits with financial institutions
- Sh908.4 million in Treasury bills
The allocation reflects a conservative strategy typical of money market funds, with liquidity and capital preservation as primary considerations.
Built on M-Pesa’s transaction layer
Ziidi’s distribution runs entirely through M-Pesa, removing transfer costs that typically apply when moving money between wallets and investment platforms. This cost structure has helped widen access, especially for retail investors starting with small amounts.
The fund accepts a minimum investment of Sh100, while transaction limits are tied to M-Pesa caps of Sh500,000 daily and Sh250,000 per transaction.
“Returns accrue daily, and the balance updates in real time, which changes how users relate to savings,” a fund manager familiar with the product said.
Partnerships and regulatory approval
Safaricom partnered with Standard Investment Bank and ALA Capital Limited to manage the fund. The product operates under approval from the Capital Markets Authority as an individual investment scheme.
The companies have also introduced a Shariah-compliant option aimed at investors who prefer profit-sharing structures over interest-based returns.
Expansion beyond individual investors
Safaricom indicates plans to extend Ziidi MMF to group-based savings structures such as chamas and small businesses, broadening its use beyond individual retail accounts.
The fund forms part of a broader effort to extend M-Pesa’s role beyond payments. Since its launch in 2007, the platform has gradually incorporated credit, savings, and investment services, positioning itself as a gateway to formal financial products for a large segment of Kenyan users.
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