Safaricom has launched Ziidi Shari'ah, a money market fund that follows Islamic finance rules and can be bought and sold directly from M-PESA. It is the second Ziidi product after the conventional Ziidi Money Market Fund, which launched in 2025.

How it works

Customers can start investing with as little as KES 100 and top up from KES 10. The fund is reached through the My OneApp app or by dialling *334#. Moving money in and out through M-PESA carries no transaction charges, and withdrawals go straight back to the customer's M-PESA wallet.

Returns are calculated daily but are not fixed. They depend on how the fund's investments perform. As with other investment returns in Kenya, a 15% withholding tax is deducted automatically.

What makes it Shari'ah-compliant

Unlike the original Ziidi fund, which puts money into interest-earning instruments, Ziidi Shari'ah does not invest in anything that pays interest. It uses profit-sharing and other structures permitted under Islamic finance. It also avoids businesses linked to alcohol, gambling, tobacco, conventional interest-based banking and weapons manufacturing.

The fund is not limited to Muslim customers. The Shari'ah label describes how the money is invested, so anyone looking for an ethical, interest-free savings option can use it.

Who runs it

GulfCap Investment Bank manages and administers the fund, KCB Bank acts as trustee, and GulfCap's Shari'ah Supervisory Board checks that it keeps to Islamic finance requirements. The Capital Markets Authority (CMA) approved the fund in February 2025.

"With Ziidi Shari'ah, we are making investing simple, affordable, and accessible," Safaricom CEO Peter Ndegwa said at the launch. Speaking for the CMA, Senior Manager for Market Deepening Justus Agoti said the product would support financial inclusion and help mobilise capital. GulfCap CEO Saud Shahbal said it gives Muslims and other ethical investors a way to save through a platform they already use.

Why it matters

Money market funds have become one of the most popular ways for Kenyans to save, and putting one inside M-PESA removes most of the paperwork. A Shari'ah option opens that door to customers who avoid interest-based products on religious or ethical grounds. The CMA is also developing a wider rulebook for Shari'ah-compliant investment products.

As with any investment, returns can go up or down. Read the fund's terms before investing.