Safaricom introduces Shari’ah-compliant fund for M-PESA investors
Safaricom has launched Ziidi Shari’ah, a money market fund tailored for M-PESA users who observe Islamic finance rules. The offering lets investors participate while avoiding interest-based tools and sectors such as alcohol, gambling, and arms production. It operates under profit-sharing models instead of conventional interest mechanisms.
The fund is accessible via My OneApp or by dialing *334#, with a minimum first deposit of KES 100 and additional contributions starting at KES 10. Daily returns fluctuate based on underlying performance, and withdrawals are credited directly to M-PESA wallets without fees. However, a 15% withholding tax applies to earnings in compliance with Kenyan tax laws.
Management of the fund falls to GulfCap Investment Bank, while KCB Bank acts as trustee. GulfCap’s Shari’ah Supervisory Board oversees compliance, ensuring all investments align with Islamic financial principles. This excludes interest-bearing securities in favor of permitted structures like profit-sharing.
Though the product is designed for Muslim investors, Safaricom states it is available to all customers. The initiative reflects growing demand for ethically aligned financial products, providing an alternative to traditional investment options. Peter Ndegwa, Safaricom’s CEO, described the launch as part of the company’s commitment to inclusive finance, making investing both accessible and values-driven.
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The Capital Markets Authority approved Ziidi Shari’ah in February 2025, recognizing its role in expanding financial inclusion and mobilizing capital. The regulator also noted rising interest in faith-based financial services and is developing a governance framework for such products. This move supports broader efforts to integrate ethical investment options into Kenya’s financial ecosystem.
Ziidi Shari’ah operates separately from Safaricom’s existing Ziidi Money Market Fund, which debuted in 2025. Both funds allow M-PESA-based investing, but they differ fundamentally: the conventional fund relies on interest-bearing instruments, while the Shari’ah-compliant version adheres strictly to Islamic finance rules.
Saud Shahbal, CEO of GulfCap, emphasized that the new fund gives Muslims and ethically conscious investors a trusted platform for savings and growth. For Safaricom, the expansion reinforces its role beyond digital payments, offering customers new ways to manage wealth while respecting their financial values.
The absence of additional fees enhances the fund’s appeal as a low-cost investment choice. Its seamless integration with M-PESA ensures smooth transactions, lowering barriers to participation in ethical investing. The product’s design aligns with Safaricom’s broader strategy of providing inclusive financial solutions tailored to diverse customer needs.
