Kenya's largest telco, Safaricom, has aggressively pushed its newly approved money market fund, Ziidi, while remaining tight-lipped about the fate of its predecessor, Mali, launched in 2020. The rollout of Ziidi has been marred by controversy, with customers left in the dark about Mali's status.

Ziidi, a partnership between Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, received regulatory approval in November 2024. The fund has already recorded over one million sign-ups, with over KES 6 billion ($46 million) in funds. However, the transition from Mali to Ziidi has sparked a legal dispute with Mali's fund manager, Genghis Capital.

In December 2024, Genghis Capital accused Safaricom of migrating customers to Ziidi without their consent. The firm also claimed that Safaricom deliberately orchestrated a liquidity crisis that would trigger mass withdrawals from Mali amid ownership disputes over the fund. The situation worsened in late December 2024 and January 2025, when Mali experienced persistent technical failure, preventing some customers from withdrawing funds or signing up.

While the service remains frozen for new registrations, Ziidi remains fully operational, fueling speculation that Mali is being phased out. Both funds currently appear on Safaricom's M-PESA app, but Safaricom and Genghis Capital have not responded to requests for comment.

By September 2024, Mali was Kenya's 17th-largest collective investment scheme, managing KES 3.1 billion ($24 million) in assets and bringing in KES 11.6 million ($89,000) for Safaricom in the first half of the year. The growth of investment funds in Kenya has been significant, with total assets under management rising 13% to KES 254 billion ($1.9 billion) in June, up from KES 225 billion ($1.7 billion) in March, according to data from the Capital Markets Authority (CMA).

Money market funds, which include Ziidi and Mali, remain the dominant choice, accounting for KES 171.2 billion ($1.3 billion) and 67.4% of total investments. The remaining assets are distributed across fixed-income, equity, and other investment categories. As the controversy surrounding Mali's fate continues, Safaricom's aggressive promotion of Ziidi raises questions about the telco's strategy and the impact on its customers.

The situation highlights the need for transparency and clear communication in the fintech industry, particularly when it comes to customer funds and investments. As the story unfolds, it remains to be seen how Safaricom will address the concerns surrounding Mali and Ziidi, and what implications this will have for the company's reputation and customer trust.