Safaricom unveils Shari'ah compliant Ziidi MMF

Safaricom CEO Peter Ndegwa at the launch of Shari’ah compliant money market solution Ziidi Shari’ah in Nairobi. [Wilberforce Okwiri,Standard]

The Capital Markets Authority (CMA) has revealed it is working on an overarching governance policy that will guide application of Shari’ah-compliant investment products into the market.

The regulator says in the recent past, Kenya has seen increasing interest in such faith-based financial instruments, an area that is also gaining momentum globally.

This interest has seen Safaricom, through a partnership with GulfCap Investment Bank, introduce Ziidi Shari’ah Money Market Fund, which was unveiled on Tuesday.

Ziidi Shari'ah then becomes a combination of Safaricom's digital capabilities and customer reach with GulfCap Investment Bank’s Shari’ah expertise as a pioneer Islamic financial institution in the country.

This product builds on Safaricom’s initial Ziidi MMF  that is almost two years old in the market.

CMA approved Ziidi Shari’ah MMF in February 2025.

CMA Chief Executive Wyckliffe Shamiah, who was represented at the launch by Justus Agoti, Senior Manager Market Deepening, said such a product helps to extend financial inclusion and will help in pooling of capital.

He spoke of how rapid Shari’ah-compliant products are gaining ground globally, citing IFSD data that records assets size to be USD 3.8 trillion as at 2025.

Shamiah said jurisdictions in the gulf, Europe and Central Asia are actively pushing for the active participation of Islamic finance in their economies.

“With regards to East Africa, we are seeing more concerted efforts with issuances that are aligning themselves to Islamic principles," he said.

Kenya and Tanzania are the two markets he singled out in the region.

“We are keen on obtaining consensus on a workable policy environment for Islamic finance in the country including identifying and effecting the Shari'ah governance model to help in improving consistency, transparency, and investor confidence,” he said.

Safaricom Plc Group Chief Executive Peter Ndegwa emphasised the importance of reaching out to the Muslim community with the new product, saying it builds on the company’s push for financial inclusion.

“This is not random; it is not just a business opportunity we have seen. It is because we have an inclusive brand,” he said.

Customers can start with as little as Sh100 and subsequent top-ups of Sh10 through Safaricom’s My OneApp or by dialling *334#.

“Part of driving financial inclusion is about making financial services relevant to the different needs and circumstances of our customers. 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,” said Peter Ndegwa, CEO, Safaricom PLC.

The fund operates independently from Safaricom's conventional Ziidi Money Market Fund.

Saud Shahbal, GulfCap Investment Bank Chief Executive said the unveiling of the Ziidi Shari’ah Money Market Fund, embedded on the robust M-Pesa platform, gives Muslims, and any individual who prefers ethical investing, an opportunity to grow their savings in line with their values.

 

“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,” he said.