Safaricom has launched Ziidi Shari’ah, a Shari’ah-compliant money market fund that allows M-PESA customers to invest while following Islamic finance principles.

The product is available to eligible M-PESA customers through the My OneApp or by dialling *334#. Customers can start investing with KES 100, while subsequent top-ups start at KES 10.

Ziidi Shari’ah was launched in partnership with GulfCap Investment Bank, which will manage and administer the fund. KCB Bank will act as trustee, while GulfCap’s Shari’ah Supervisory Board will oversee compliance with Islamic finance requirements.

Unlike conventional money market funds, the fund does not invest in interest-bearing instruments. Instead, it uses Shari’ah-compliant structures based on profit-sharing and other permitted arrangements.

The fund also excludes sectors considered incompatible with Islamic finance principles, including alcohol, gambling, tobacco, conventional interest-based banking, and weapons manufacturing.

Returns on Ziidi Shari’ah accrue daily but are variable and depend on the performance of the underlying investments.

Customers can deposit and withdraw money through M-PESA without transaction charges, with withdrawals going directly to their M-PESA wallets. A 15% withholding tax is automatically deducted from returns in line with Kenyan tax requirements.

The fund is not limited to Muslim customers. Safaricom says the Shari’ah designation refers to how the fund’s money is invested rather than who can use the product.

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

The Capital Markets Authority approved Ziidi Shari’ah in February 2025. Speaking at the launch, CMA Senior Manager for Market Deepening Justus Agoti, representing CEO Wyckliffe Shamiah, said the product would contribute to financial inclusion and capital mobilization.

The CMA is also developing a broader governance framework for Shari’ah-compliant investment products as demand for faith-based financial services increases.

Ziidi Shari’ah operates separately from Safaricom’s conventional Ziidi Money Market Fund, which launched in 2025.

Both products allow customers to invest through M-PESA, but they differ in how their funds are invested and how returns are generated.

The conventional Ziidi fund invests in money market instruments that generate interest-based returns, while Ziidi Shari’ah follows investment structures approved under Islamic finance principles.

GulfCap CEO Saud Shahbal said the new fund gives Muslims and other investors looking for ethical investment options a way to save and invest through a platform they already use.

For Safaricom, the launch adds another investment option to M-PESA as the mobile money platform expands beyond payments and transfers into savings and investment products.