Safaricom introduces Shari’ah-compliant fund for M-PESA investors

This product enables customers to invest while avoiding Shari’ah prohibitions, such as interest-based returns or involvement in restricted industries. The fund’s design ensures compliance with religious guidelines without limiting access to non-Muslim investors.

Accessible through My OneApp or via *334#, the fund allows minimum investments of KES 100, with additional contributions possible in increments of KES 10. GulfCap Investment Bank manages the fund, while KCB Bank serves as trustee. Compliance with Shari’ah rules is overseen by GulfCap’s Shari’ah Supervisory Board, ensuring all transactions align with Islamic financial principles.

Unlike conventional money market funds, Ziidi Shari’ah excludes interest-bearing instruments. Instead, it operates on profit-sharing models and other Shari’ah-approved structures. The fund also bars investments in sectors such as alcohol, gambling, tobacco, conventional banking, and weapons manufacturing. Returns are calculated daily but fluctuate based on performance, with withdrawals credited directly to M-PESA wallets. A 15% withholding tax on returns applies, in accordance with Kenyan tax regulations.

Peter Ndegwa, Safaricom’s CEO, said part of driving financial inclusion is about making financial services relevant to different customer needs. “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 Capital Markets Authority (CMA) granted approval for the fund in February 2025. Justus Agoti, a senior manager at the CMA, stated at the launch event that the product would enhance financial inclusion and stimulate capital mobilization. The CMA is also drafting full guidelines for additional Shari’ah-compliant investment options, anticipating rising demand in the market.

Ziidi Shari’ah operates independently from Safaricom’s existing Ziidi Money Market Fund, which launched in 2025. Both funds permit M-PESA-based investments, but they differ fundamentally: the conventional fund uses interest-bearing mechanisms, while the Shari’ah version follows profit-sharing principles. Saud Shahbal, CEO of GulfCap, said the new offering delivers ethical investment choices through a platform already familiar to millions of users.