Safaricom launches Shari'ah-compliant money market fund on M-Pesa
What's the deal? Safaricom, in partnership with Gulfcap Investment Bank (GCIB)Dealroom has a profile for this one. Try Dealroom →, has launched the Ziidi Shari'ah Money Market Fund, giving M-PesaDealroom has a profile for this one. Try Dealroom → customers access to investments that follow Islamic finance principles. Customers can start with as little as Sh100, with top-ups from Sh10.
How it works: The fund is accessible through Safaricom's My OneApp or by dialling *334#, letting users invest without visiting a financial institution. Customers can track daily profit, make free deposits, and withdraw to their M-Pesa wallets at no cost; they can also lock funds to limit unplanned withdrawals.
What's the endgame? The fund invests only in short-term, liquid instruments at Shari'ah-compliant banks, keeping returns free of interest (riba). It operates independently from Safaricom's conventional Ziidi Money Market Fund and is regulated by the Capital Markets Authority, with oversight from GCIB's Shari'ah Supervisory Board.
Safaricom chief executive officer Peter Ndegwa framed the launch as part of a financial inclusion push. "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," he said.
Who it's for: GCIB chief executive officer Saud Shahbal said the fund targets Muslims and anyone who prefers ethical investing. "This preserves capital and daily liquidity, while ensuring returns are free of interest (riba) and are earned only from ethical, permissible activities," he said.
The fine print: There is no maximum investment limit, but M-Pesa transaction caps apply — a daily limit of Sh500,000 and a per-transaction limit of Sh250,000.
The signal: By embedding a Shari'ah-compliant product on M-Pesa, Safaricom is extending digital investing to an underserved segment while deepening M-Pesa's role beyond payments into savings and wealth-building.
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