Kenya has always been at the forefront of financial innovation. From M-PESA, which revolutionized mobile money worldwide, to the rise of Money Market Funds (MMFs) that have become the most popular investment vehicle in the country, our financial story is one of creativity and access.
Now, there’s a new chapter being written: Ziidi Money Market Fund (Ziidi MMF). Powered by M-PESA and regulated as a Collective Investment Scheme (CIS), Ziidi makes it possible for anyone with just Ksh 100 to start investing.
No paperwork, no bank queues—just your phone.
But how does Ziidi compare with traditional MMFs? How has it performed so far? And most importantly, does it make sense for you to invest in it?
Let’s dive in.
What Is Ziidi Money Market Fund?
Ziidi MMF is a regulated unit trust fund by Safaricom that pools money from many investors and invests it in safe, interest-bearing assets such as treasury bills, government bonds, and fixed deposits.
The fund is approved and supervised by the Capital Markets Authority (CMA), which means your money is handled under strict regulatory oversight.
What makes Ziidi different from every other MMF is accessibility. Instead of signing papers at a fund manager’s office or setting up an account through a bank, all you need is the M-PESA app.
Safaricom partnered with licensed fund managers to create Ziidi, integrating it directly into the M-PESA ecosystem.
With more than 30 million M-PESA users, Ziidi is tapping into Kenya’s largest financial network.
For the first time, everyday Kenyans—bodaboda riders, mama mbogas, students, SMEs—can invest professionally without barriers. That’s the power of digital-first investing.
Ziidi In Numbers (As Of June 2025)
The numbers tell the story of just how impactful Ziidi has become in a short span of time. According to the CIS Quarterly Report (Q2 2025):
- Assets Under Management (AUM): Ksh 10.2 Billion
- Market Share: 1.7% of the total CIS market
- Ranking: Top 15 overall CIS, and among the Top 10 MMFs in Kenya
- Quarterly Growth: From Ksh 7.3B in March 2025 to Ksh 10.2B in June 2025—a 39% jump in just three months
This growth is remarkable.
Many older funds that have existed for decades still don’t command Ksh 10B in AUM. Ziidi, barely two years into the market, is already rubbing shoulders with big names like Absa, ICEA Lion, and Co-op.
Ziidi MMF Position Vs Other MMFs (June 2025)
| Rank | Fund Manager | AUM (Ksh Billions) | Market Share in MMFs |
| 1 | Sanlam MMF | 92.7 | 24.9% |
| 2 | CIC MMF | 87.8 | 23.6% |
| 3 | Absa Shilling MMF | 23.1 | 6.2% |
| 4 | ICEA Lion MMF | 20.2 | 5.4% |
| 5 | Co-op MMF | 19.5 | 5.2% |
| 6 | Old Mutual MMF | 19.5 | 5.2% |
| 7 | KCB MMF | 15.8 | 4.2% |
| 8 | Britam MMF | 12.9 | 3.5% |
| 9 | Etica MMF | 10.6 | 2.8% |
| 10 | Ziidi MMF | 10.2 | 2.7% |
(Source: CIS Report Q2 2025)
What this table shows is that Ziidi is no longer a newcomer. It has established itself in the Top 10 MMFs within record time.
If this growth continues, Ziidi could easily overtake funds like Britam or KCB in the near future.
How Does Ziidi Money Market Fund Work?
Ziidi is built for simplicity and convenience. Here’s how it works step by step:
- Access via M-PESA App
- Open the M-PESA Super App.
- Go to Wealth → Ziidi.
- Open the M-PESA Super App.
- Invest with as Low as Ksh 100
- You don’t need thousands to start. With Ksh 100, you’re already in.
- You don’t need thousands to start. With Ksh 100, you’re already in.
- Daily Interest Accrual
- Your money earns interest every day, calculated on your balance and automatically reinvested.
- Your money earns interest every day, calculated on your balance and automatically reinvested.
- Instant Withdrawals
- Need cash? Withdraw directly to your M-PESA wallet—no delays, no paperwork.
- Need cash? Withdraw directly to your M-PESA wallet—no delays, no paperwork.
- Professional Fund Management
- Licensed fund managers invest pooled money in treasury bills, bonds, and fixed deposits.
- Licensed fund managers invest pooled money in treasury bills, bonds, and fixed deposits.
Key Features Of Ziidi MMF
Let’s expand on what makes Ziidi attractive:
- Low Entry Barrier – Traditional MMFs often require Ksh 1,000 to Ksh 5,000 to start. Ziidi slashes this to just Ksh 100.
- Accessibility – Your phone is your investment account. No forms, no banks.
- Competitive Returns – Annualized yields typically range between 8%–12%, depending on prevailing interest rates.
- Liquidity – Withdraw at any time without penalties.
- Transparency – Daily NAV (Net Asset Value) updates let you track growth.
- Inclusivity – Soon to include a Shariah-compliant fund.
These features make Ziidi one of the most flexible and approachable investment vehicles in Kenya today.
Why Ziidi Money Market Fund Is A Game-Changer
Ziidi’s impact goes beyond returns. It’s reshaping the financial landscape in three key ways:
- Financial Inclusion
Millions of Kenyans without formal bank accounts now have access to a regulated investment fund. All they need is a mobile phone.
- Small Business Advantage
SMEs can park surplus cash in Ziidi, earn interest, and withdraw instantly to cover expenses—much better than leaving money idle in an M-PESA till.
- Youth Engagement
Kenya’s young professionals and students can now learn about investing early. With Ziidi, saving for school fees, rent, or a side hustle fund becomes realistic.
With over 30M M-PESA users, the growth potential is massive. Ziidi is not just competing with traditional MMFs—it’s expanding the entire investment market.
Benefits Of Investing In Ziidi
Why choose Ziidi over just leaving money in your wallet or bank account?
- Safety: Funds are invested in government-backed securities and overseen by CMA.
- Better Returns: Bank savings accounts rarely give more than 3–4%. Ziidi typically earns between 8–12% p.a.
- Daily Liquidity: You’re not locked in. Withdraw anytime.
- Affordability: Start small, scale up gradually.
- Flexibility: Use it as an emergency fund, business float, or school fees kitty.
If you want to turn Ziidi into a structured financial plan, I recommend downloading my free Personal Finance Plan Guide. It will help you decide how Ziidi fits into your bigger money goals—whether that’s saving for emergencies, retirement, or education.
Risks And Considerations
Even with all its benefits, Ziidi isn’t risk-free. You should understand:
- Return Variability: Returns change depending on interest rates in the economy.
- Inflation Risk: If inflation spikes above 12%, real returns may erode.
- Not Insured like a Bank: Ziidi isn’t a deposit account—it’s an investment.
- Market Dependency: Though low-risk, Ziidi depends on Kenya’s fixed-income markets.
The good news? Ziidi is still one of the safest and most liquid ways to invest in Kenya today.
Ziidi’s Place In Kenya’s Investment Landscape
As of June 2025, Money Market Funds dominate with 62.5% of all CIS assets (Ksh 372.8B). Ziidi is riding this wave, but with a digital-first approach.
Interestingly, this isn’t Safaricom’s first attempt. They previously launched Mali, which struggled due to regulatory issues. Ziidi, however, is fully approved by CMA, professionally managed, and built on strong partnerships.
This difference explains why Ziidi has already reached over Ksh 10B AUM while Mali never took off.
Performance Outlook (2025 And Beyond)
Looking ahead, Ziidi is positioned for exponential growth:
- Q2 2025 Growth: 39% in one quarter.
- M-PESA Base: Over 30M users with growing adoption.
- Trends: Kenyans increasingly prefer safe, flexible MMFs over savings accounts.
If this trajectory holds, Ziidi could double to Ksh 20B AUM by 2026 and potentially rank among the Top 5 MMFs by 2027.
How To Get Started With Ziidi
Here’s a simple guide:
- Update your M-PESA App to the latest version.
- Go to Financial Services → Ziidi.
- Register with your M-PESA details (KYC required).
- Deposit as little as Ksh 100.
- Track returns daily within the app.
- Withdraw anytime directly to your wallet.
Alternatively:
Dial *344# on your phone, choose Financial Services, then Ziidi, and follow the prompts.
Who Should Consider Ziidi?
Ziidi is perfect for:
- Young Professionals: Start your investment journey early.
- Parents: Build a school fees reserve that grows.
- SMEs: Park short-term float and earn interest.
- Diaspora Kenyans: Send money directly into a safe, interest-earning account.
- Everyday Kenyans: Move idle M-PESA balances into a productive fund.
Ziidi Shariah MMF
At present, Ziidi is an interest-earning money market fund. But Safaricom has confirmed that a Shariah-compliant version will be unveiled soon.
This will cater to Muslim investors and anyone seeking halal-aligned investing. Instead of conventional interest, it will focus on Shariah-approved instruments such as sukuks and Islamic deposits.
This move signals Ziidi’s commitment to inclusivity and future-proofing its product for a diverse Kenyan market.
Frequently Asked Questions
What’s The Minimum I Can Invest In Ziidi Money Market Fund?
The beauty of Ziidi is accessibility. Unlike many traditional funds that require thousands to start, Ziidi only needs Ksh 100. This makes it possible for students, SMEs, or anyone who wants to test the waters to get started.
From there, you can top up anytime—whether it’s Ksh 200 from your daily sales or Ksh 20,000 from your salary. The fund doesn’t lock you out based on how much you have.
How Quickly Can I Withdraw My Money?
Liquidity is one of Ziidi’s strongest advantages. Withdrawals go straight into your M-PESA wallet, typically within a few hours, though Safaricom notes that timelines can vary depending on processing volumes.
Unlike fixed deposits or chamas, you don’t have to wait for maturity or approval. If you need money for an emergency, a school fee deadline, or to restock your business, it’s available almost instantly.
Is My Money Safe In Ziidi?
Ziidi is regulated by the Capital Markets Authority (CMA) and managed by licensed fund managers. Your money is invested in safe assets like treasury bills, government bonds, and fixed deposits.
That said, it’s important to understand that Ziidi is not a bank deposit—it’s an investment. While the risks are low, returns can fluctuate. The good news is that MMFs are historically very stable in Kenya and have rarely failed because they rely on short-term government-backed securities.
What Returns Should I Expect?
Ziidi’s returns vary depending on prevailing interest rates. Historically, Kenyan MMFs deliver between 8% and 12% per year. In periods of high interest rates, returns can edge closer to the double digits.
Remember, though: returns are quoted net of fees but before tax. The actual figure you receive will reflect daily compounding, which means your money quietly grows every single day you keep it invested.
How Does Ziidi Compare To Saving In M-Pesa Or Using Fuliza?
Leaving money idle in your M-PESA wallet earns you zero returns. Fuliza, on the other hand, is an overdraft facility that charges you fees and interest when you borrow.
Ziidi flips this around—you’re the one earning interest instead of paying it. For example, Ksh 20,000 left idle in M-PESA stays Ksh 20,000. In Ziidi, that same amount could generate Ksh 1,800–2,000 in annual interest while still being liquid.
Can Ziidi Replace My Savings Account?
It depends on your goals. Ziidi works perfectly as a short-term savings and parking account because it gives better returns than a bank savings account and has instant liquidity. However, if you need a transactional account (for salary deposits, paying rent, or cheque services), you’ll still need a traditional bank account.
Think of Ziidi as a place to grow money that you don’t need for daily spending but still want easy access to.
Is There Tax On My Ziidi Returns?
Yes. Just like other MMFs, Ziidi’s returns are subject to 15% withholding tax. This tax is automatically deducted before you receive your interest. For instance, if the gross annual return is 10%, the net return after tax will be around 8.5%.
How Does Ziidi Make Money For Investors?
Ziidi pools funds from thousands of investors and buys safe, interest-earning instruments such as treasury bills, government bonds, and fixed deposits. These assets pay interest to the fund.
After deducting management fees and tax, the remaining interest is distributed back to investors daily. It’s a way of outsourcing investment management to professionals who ensure your money earns without you lifting a finger.
What Fees Does Ziidi Charge?
Like all MMFs, Ziidi charges a management fee—usually between 1%–2% annually—deducted before returns are credited to you. This fee covers the cost of running the fund, paying professionals, and ensuring compliance. The good news is you don’t see it as a separate charge; it’s already factored into the net returns you see daily.
Can I Use Ziidi For Long-Term Goals Like Retirement?
While Ziidi is excellent for short- to medium-term savings (1–3 years), it’s not ideal for retirement planning because returns may only keep pace with inflation. For retirement, you need a mix of MMFs, fixed income funds, and pension products.
That said, Ziidi can form the foundation of your financial safety net—your emergency fund or school fees buffer—while you build longer-term portfolios elsewhere.
Who Should Not Invest In Ziidi Money Market Fund?
If you’re looking for speculative, high-risk, high-return opportunities, Ziidi is not for you. It’s designed for stability and steady growth, not quick jackpots. Also, if you need a transactional account for daily spending, Ziidi won’t replace your bank account—it’s best for parking and growing money safely.
Final Thoughts
The Ziidi Money Market Fund is more than just another investment product. It’s a bridge—connecting Kenya’s most used financial tool (M-PESA) with the country’s most trusted investment vehicle (MMFs).
In just months, Ziidi has grown into a 10B+ shilling fund, proving that ordinary Kenyans are hungry for accessible, safe, and rewarding ways to grow their money.
Whether you’re a young professional, a parent, or a small business owner, Ziidi gives you a chance to invest from as little as Ksh 100—all from your phone.
And Safaricom isn’t stopping there. While Ziidi is currently an interest-earning money market fund, work is underway to launch a Shariah-compliant version that will cater to Muslim investors and anyone seeking halal-aligned options.
This shows that Ziidi is not only solving today’s needs but also future-proofing itself for a more inclusive financial landscape. If you’ve been wondering where to start your investment journey, Ziidi is one of the most practical entry points.
Just remember: while Ziidi is low-risk, it’s not risk-free. Align your investments with your financial goals, diversify, and let your money work for you.
