Safaricom has expanded its investment services to customers seeking Islamic finance with the launch of the Ziidi Shariah Money Market Fund, allowing M-Pesa users to invest without using interest-based products.

The new fund, launched in partnership with GulfCap Investment Bank, is available through Safaricom’s My OneApp and the *334# USSD service. Customers can start with Sh100, while subsequent top-ups can be as low as Sh10.

The product is designed to follow Shariah principles, which prohibit riba, or interest, and restrict investments to activities considered permissible under Islamic finance. Unlike the conventional Ziidi Money Market Fund, the new product operates independently today as a separate fund.

Safaricom Chief Executive Officer Peter Ndegwa said the service was intended to make investment accessible to customers with different needs.

“Part of driving financial inclusion is about making financial services relevant to the different needs and circumstances of our customers,” Ndegwa said. “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.”

GulfCap Investment Bank Chief Executive Officer Saud Shahbal said the fund would invest in short-term instruments held by Shariah-compliant banks.

“This preserves capital and daily liquidity, while ensuring returns are free of interest (riba) and are earned only from ethical, permissible activities,” Shahbal said.

Customers will be able to view their daily profits, make deposits without a charge and withdraw money into their M-Pesa wallets at no cost. The service also allows investors to lock funds, giving them an option to discourage unplanned withdrawals.

There is no stated maximum investment amount, although normal M-Pesa transaction limits apply. Customers can transact up to Ksh 500,000 per day, with a maximum of Ksh 250,000 allowed in a single transaction.

The fund is regulated by the Capital Markets Authority and operates under the oversight of GulfCap’s Shariah Supervisory Board.

The CMA approved the registration of the Ziidi Shariah Money Market Fund in February 2025 as a standalone Shariah-compliant collective investment scheme. At the time, the regulator said the product would target registered M-Pesa customers who either follow Islam or prefer Shariah-compliant investments.

The approval also reflected growing interest in Islamic finance in Kenya, with the CMA noting that seven licensed firms were then offering Shariah-compliant unit trust funds.

The launch gives M-Pesa customers another way to save and invest through a platform they already use, while widening access to Shariah-compliant investment products.