In the ever-evolving landscape of Kenyan personal finance, money market funds (MMFs) remain a go-to for low-risk savings with a dash of returns. Safaricom’s Ziidi MMF, launched in late 2024, promised to democratise investing via M-Pesa with just KSh 100.
But as yields dip amid easing interest rates, is it still a smart move? This fact-checked deep dive pulls from recent data, regulatory filings, and real user sentiment to help you decide.
What Is Ziidi MMF, Anyway?
Ziidi Money Market Fund is a collective investment scheme (unit trust) managed by Safaricom in partnership with Standard Investment Bank and ALA Capital.
Approved by Kenya’s Capital Markets Authority (CMA) in November 2024, it pools investor money into safe assets like Treasury bills, fixed deposits, and other short-term securities.
It’s designed for M-Pesa users, letting you invest, withdraw, or check balances via *334# or the M-Pesa app with no bank account required.
Key features at a glance:
- Minimum investment: KSh 100
- Liquidity: Instant withdrawals to M-Pesa (T+0 for most cases)
- Risk level: Low (focus on government-backed securities)
- Interest accrual: Daily, credited monthly
- Fees: No entry/exit fees; management fee ~1.5% annually
Launched amid hype for mobile-first wealth building, Ziidi aimed to onboard millions of unbanked Kenyans. By mid-2025, it had attracted significant inflows, but performance has been a mixed bag.
Current Performance: A Cooling Trend
As of September 2025, Ziidi’s effective annual yield (EAY) hovered between 6.5% and 7.0%, with a notable drop from early 2025 peaks of around 8% and highs of 10-13% in late 2024.
This mirrors broader MMF trends:Central Bank of Kenya (CBK) repo rates eased to ~10.5% by Q3 2025, pulling down short-term yields across the board.
READ ALSO:How to Open and Invest in Ziidi MMF via M-Pesa
Here’s a snapshot of Ziidi’s recent yields vs. top competitors (EAY as of late September 2025):
| Fund | EAY (%) | Minimum Investment | Liquidity |
|---|---|---|---|
| Ziidi (Safaricom) | 6.5-7.0 | KSh 100 | Instant |
| Etica MMF | ~13.1 | KSh 5,000 | T+2 |
| CIC MMF | ~12.8 | KSh 1,000 | T+2 |
| Mali Invest MMF | ~9.3 | KSh 100 | T+1 |
| Lofty-Corban Bond | ~14.4 | KSh 5,000 | T+3 |
Ziidi’s rates can swing wildly; users reported 3.2% on a Friday spiking to 10.13% on Sunday, then settling at 6.5% on Monday.
This volatility stems from its heavy reliance on daily money market auctions, not fixed rates. For context, Q1 2025 saw MMF assets under management (AUM) surge 27.5% q/q to KSh 496.2 billion, but yields compressed as liquidity flooded the market.
Projections for Q4 2025? Analysts expect stabilisation around 7-9% if CBK holds steady, but inflation at ~5.5% means real returns are slim (1.5-3.5%).
User Reviews: Accessibility Wins, But Yields Frustrate
Sentiment on Ziidi is polarised: love for its ease, gripes over returns. We investigated X (formerly Twitter) and forums for 2025 takes (filtered post-Jan 1):
The Good (Accessibility & Trust):
- “Ziidi MMF is making wealth creation accessible… start with KES 100 and enjoy daily interest.” – Safaricom PLC, Jan 2025.
- “Revolutionising how Kenyans save… mobile-based, legit, not a scam.” – Reddit user, Feb 2025 (after investing KSh 1,500).
- “Instant access via M-Pesa is priceless for emergencies.” SokoAnalyst, Sep 2025.
- Beginners rave: “Low-risk entry point for first-timers.” One X user: “Dial *334# and you’re in, no excuses!”
The Bad (Yields & Stability):
- “Earned just 34 bob interest from Jan… Hizi (these) MMFs are a waste.” – X user Willy Abuga, Mar 2025.
- Rate complaints: “Unstable – 6.3% vs. Mali’s 9.3%. Why sidelined Mali?” – Multiple X threads, Sep 2025.
- “Rates decreasing steadily since launch… issues with returns.” – Facebook group, Mar 2025.
- Regulatory heat: A June 2025 complaint accused Ziidi of anti-competitive bundling with M-Pesa.
Overall vibe on X: 60% positive for convenience, 40% negative on performance (based on ~50 recent posts). No major scam flags, as it’s CMA-regulated and transparent.
Pros and Cons: At a Glance
| Pros | Cons |
|---|---|
| Super accessible (M-Pesa integration, KSh 100 min) | Lower yields than peers (6-7% vs. 12%+) |
| Instant liquidity for emergencies | High volatility in daily rates |
| Daily compounding, low risk | Management fees eat into small pots |
| Beginner-friendly, no paperwork | Recent regulatory scrutiny |
Should You Invest in Ziidi MMF Now?
Yes, if you’re new to investing, value seamless M-Pesa access, or need a high-liquidity “parking spot” for cash (e.g., an emergency fund). At 6.5-7%, it’s beating inflation and bank savings (~4%), with zero effort. Start small with compound KSh 10,000 monthly at 7% for ~KSh 7,500 extra by year-end.
No, if you’re chasing max returns. Switch to Etica or CIC for 12%+ EAY, or diversify into bonds/SACCOs. Yields may rebound if CBK hikes rates, but don’t bet on it short-term.
Bottom line: Ziidi shines for convenience over yield-chasing. In a market where MMFs grew 120% YoY, it’s a solid starter, but shop around. Always DYOR; past performance isn’t future-proof.
Disclaimer: This isn’t financial advice. Consult a certified advisor.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
Leave a Reply