M-PESA customers in Kenya can now invest their savings in an Islamic money market fund within the app. Safaricom has launched Ziidi Shari’ah, a Shari’ah-compliant fund run with GulfCap Investment Bank (GCIB) that sits alongside, and separate from, its conventional Ziidi money market fund.
Kenya’s Capital Markets Authority (CMA) regulates the fund. GCIB manages the investments, and its Shari’ah Supervisory Board oversees compliance with Islamic finance principles, which prohibit earning interest.
How Ziidi Shari’ah works
Customers deposit and withdraw between the fund and their M-PESA wallet at no cost, and can track their profit daily. They can also lock funds for a period to discourage unplanned withdrawals.
There is no maximum investment, but M-PESA’s own transaction limits apply: KES 500,000 a day and KES 250,000 per transaction. Safaricom did not disclose a minimum investment, an expected rate of return, or how many customers use the conventional Ziidi fund.
“The fund invests exclusively in short-term, highly liquid instruments in Shari’ah-compliant banks. This preserves capital and daily liquidity, while ensuring returns are free of interest (riba) and are earned only from ethical, permissible activities,” said Saud Shahbal, CEO of GulfCap Investment Bank.
From payments to wealth
“Part of driving financial inclusion is making financial services relevant to the different needs and circumstances of our customers,” said Peter Ndegwa, CEO of Safaricom. “With Ziidi Shari’ah, we are making investing simple, affordable and accessible, while providing an option that aligns with the values that guide our customers’ lives.”
The launch is part of Safaricom’s push to turn M-PESA from a payments and transfers platform into a full financial services ecosystem for saving and investing. Vodacom has owned a majority stake in Safaricom since July, when it completed its $2.1 billion purchase of a 55% stake. Islamic finance is a growing niche for digital providers in East Africa: in Somaliland, Wadaag Bank is building a digital-first Sharia-compliant bank around mobile money.
The figures Safaricom left out, on uptake and returns, will decide whether Ziidi Shari’ah becomes a mass-market savings product or stays a niche option within M-PESA.
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