Safaricom has unveiled a Shari'ah-compliant Ziidi Money Market Fund in partnership with GulfCap Investment Bank. The new product, Ziidi Shari'ah, combines Safaricom's digital capabilities and customer reach with GulfCap Investment Bank's Shari'ah expertise. This product builds on Safaricom's initial Ziidi MMF that has been in the market for almost two years. The Capital Markets Authority (CMA) approved Ziidi Shari'ah MMF in February 2025.
The CMA is working on an overarching governance policy to guide the application of Shari'ah-compliant investment products in the market. The regulator has noted increasing interest in faith-based financial instruments in Kenya and globally. According to IFSD data, the assets size of Shari'ah-compliant products is USD 3.8 trillion as of 2025. Jurisdictions in the gulf, Europe, and Central Asia are actively pushing for the participation of Islamic finance in their economies.
CMA Chief Executive Wyckliffe Shamiah said that Shari'ah-compliant products help extend financial inclusion and pool capital. He noted that East Africa, particularly Kenya and Tanzania, is seeing more concerted efforts with issuances aligning with Islamic principles. Shamiah emphasized the importance of obtaining consensus on a workable policy environment for Islamic finance in the country.
Safaricom Plc Group Chief Executive Peter Ndegwa emphasized the importance of reaching out to the Muslim community with the new product. He said it builds on the company's push for financial inclusion and is not just a business opportunity. Customers can start investing with as little as Sh100 and subsequent top-ups of Sh10 through Safaricom's My OneApp or by dialling *334#.
The fund operates independently from Safaricom's conventional Ziidi Money Market Fund. GulfCap Investment Bank Chief Executive Saud Shahbal said the unveiling of the Ziidi Shari'ah Money Market Fund gives Muslims and individuals who prefer ethical investing an opportunity to grow their savings in line with their values.
The Ziidi Shari'ah Money Market 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 and earned only from ethical, permissible activities.
The introduction of Ziidi Shari'ah MMF is expected to increase financial inclusion and provide an investment option that aligns with the values of Muslim customers. The partnership between Safaricom and GulfCap Investment Bank aims to provide accessible and affordable investing options to customers.
Key points
- The Capital Markets Authority is working on a governance policy for Shari'ah-compliant investment products.
- Ziidi Shari'ah MMF was approved by the CMA in February 2025.
- The fund allows customers to start investing with as little as Sh100.
