Safaricom PLC has ventured into the money market business, as it continues to diversify its products away from telecommunication services. Safaricom Money Market fund subsidiary, Ziidi, has received a license from the Capital Markets Authority (CMA).
CMA has licensed Ziidi MMF as a Collective Investment Scheme (CIS), catching most investors off-guard. It will be accessible through the MPESA-platform similar to the other Safaricom-backed Unit Trust Mali managed by Genghis Capital.
The investment product is being offered in partnership by Safaricom with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.
> Why Investors Are Pouring Money Into Money Market Funds
Mr Wycliffe Shamiah, CMA’s CEO, said in a statement the new development underscores the capital markets regulator’s commitment to foster innovation which also enables Safaricom enhance its footprint in the finance services sector.
A money market fund is a mutual fund that invests in cash and low-risk, short-term debt securities. The fund manager allocates pooled funds from investors to different asset classes. Money market funds were originally introduced in the 1970s to offer more competitive rates than the banks whose rates are mainly tied to the Central bank rates.
Money Market Funds, or MMFs, remain the most popular investment vehicle in Kenya, accounting for Ksh171.2 billion, or 67.4% of all Collective Investment Schemes (CIS), under management for the year ended June 2024. The other funds take up the remaining 32.6% share – Fixed Income Fund (52.1 billion), Equity Fund (2.6 billion), Balanced Fund (1.4 billion), Other Funds (26.8 billion).
> Top Money Market Funds in Kenya: A Review of ABSA Money Market Fund
Good morning, I am trying to log in to ziidi but it is not working. what could be the issue? Please help.
Have see this safaricom plc if can give me a loan