Kenya’s largest telco, Safaricom Plc, has received approval to enter the Money Market Fund Industry as it seeks to diversify its portfolio.
The Capital Markets Authority, on Wednesday, announced the approval of Safaricom’s Ziidi Money Market Fund as a Collective Investment Scheme (CIS).
The new fund will be accessible through the Platform, making it convenient for subscribers to grow wealth through the capital markets.
Safaricom offers Ziidi in partnership with ALA Capital Limited, Sanlam Investments East Africa Limited, and Standard Investment Bank.
Commenting on the development, CMA’s CEO Wyckliffe Shamiah said Ziidi’s approval “underscores the regulator’s commitment to foster innovation, which also enables Safaricom to enhance its footprint in the finance services sector.
The Ziidi Money Market Fund is the second money market fund by the telco company. In 2019, in partnership with Genghis Capital, Safaricom introduced its first MMF, dubbed Mali, which allows M-Pesa customers to invest as little as Kshs 100.
A money-marked fund is a collective investment scheme that primarily invests in low-risk and short-term fixed-income instruments such as commercial papers and treasury bills. Unlike other investment vehicles, money market funds seek to minimize exposure to losses to market, credit, or liquidity risks.
Money market funds are currently Kenya’s most popular investment vehicles, accounting for 67.4% of all Collective Investment Schemes in the country as of June 2024.
Ziidi Money Market Fund is designed to “empower unit holders by offering diversified and accessible investment options as part of the National Government’s financial inclusion strategy,” according to the statement by CMA.
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