Safaricom Takes Shari’ah-Compliant Investing to M-PESA Customers

Safaricom, a major telecommunications company in Kenya, has teamed up with GulfCap Investment Bank (GCIB) to offer M-PESA customers access to Shari'ah-compliant investment products through a digital platform. This new money market fund, named Ziidi Shari'ah, allows users to start investing with just Sh100, and subsequent contributions can begin from as low as Sh10.

Customers can invest and manage their funds through My OneApp or by dialing *334#, making the service accessible to both smartphone users and those relying on USSD. Safaricom's CEO, Peter Ndegwa, emphasized that the Ziidi Shari'ah product aims to make investing accessible and affordable while respecting the values of the company's customers.

Regulated by the Capital Markets Authority (CMA) and overseen by GCIB’s Shari'ah Supervisory Board, Ziidi Shari'ah operates independently from Safaricom's conventional Ziidi Money Market Fund. The fund is available not only to Muslim investors but also to those seeking ethical investment options.

GCIB CEO, Saud Shahbal, explained that the fund invests exclusively in short-term, highly liquid instruments within Shari'ah-compliant banks. This approach preserves capital and provides daily liquidity, while ensuring returns are free of interest and earned from ethical, permissible activities. Customers can track daily profits, deposit into their Ziidi Shari'ah accounts without fees, and withdraw funds to their M-PESA wallets without incurring any withdrawal charges.

There is no maximum investment limit, but customers must adhere to M-PESA transaction limits, including a daily limit of Sh500,000 and a per-transaction limit of Sh250,000.

The launch of Ziidi Shari'ah broadens M-PESA's role beyond payments and money transfers, positioning the platform as a comprehensive financial services ecosystem for customers to save, invest, and build wealth.