Safaricom, GulfCap target Sh100 investors with Shari’ah fund

Safaricom PLC and GulfCap Investment Bank (GCIB) have opened a new front in Kenya’s retail investment market with the launch of a Shari’ah-compliant money market fund that allows M-Pesa customers to start investing with just Sh100.

The Ziidi Shari’ah Money Market Fund targets customers seeking investments that comply with Islamic finance principles, while also appealing to investors looking for ethical investment options.

The fund lowers the entry barrier further by allowing subsequent contributions of as little as Sh10, potentially opening the formal investment market to a wider pool of small savers.

Customers can invest through Safaricom’s My OneApp or by dialling *334#, putting the investment product directly within the reach of M-Pesa’s extensive customer base.

For investors, the launch represents a significant expansion of the digital savings and investment market, combining Safaricom’s distribution network and M-Pesa infrastructure with GulfCap’s fund management and Shari’ah expertise.

Safaricom Chief Executive Officer (CEO) Peter Ndegwa said the product was aimed at making investment accessible to customers whose financial decisions are also shaped by their values.

“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.”

The fund is regulated by the Capital Markets Authority (CMA) and operates separately from Safaricom’s conventional Ziidi Money Market Fund.

GulfCap Investment Bank CEO Saud Shahbal said the product creates a new avenue for Muslims and other investors seeking ethical investment opportunities.

“The unveiling of the Ziidi Shari’ah Money Market Fund, embedded on the robust M-Pesa platform, gives Muslims, and any individual who prefers ethical investing, an opportunity to grow their savings in line with their values,” Shahbal said.

The fund invests in short-term, highly liquid instruments in Shari’ah-compliant banks.

Unlike conventional interest-bearing investments, its returns must comply with Islamic finance rules prohibiting riba, or interest, and restricting investments to permissible activities.

The structure gives investors daily visibility of their profits while allowing free deposits and withdrawals into their M-Pesa wallets.

Customers can also lock their funds, providing an additional mechanism for disciplined long-term saving.

There is no maximum investment limit, although M-Pesa transaction ceilings apply. Customers can transact up to Sh250,000 per transaction, with a daily limit of Sh500,000.

The launch comes as Kenya’s financial services industry increasingly shifts towards mobile-based savings and investment products, with providers competing to convert large digital customer bases into active investors.

For Safaricom, Ziidi Shari’ah adds another investment product to the M-Pesa ecosystem and strengthens the company’s push beyond payments into savings, investments and wealth-building services.

Ziidi Shari’ah is regulated by the Capital Markets Authority (CMA) and invests in accordance with Shari’ah principles under the oversight of GCIB’s Shari’ah Supervisory Board.

The fund operates independently from Safaricom’s conventional Ziidi Money Market Fund.