What is Ziidi Shariah MMF?

The Ziidi Shariah Money Market Fund (MMF) is a Shariah-compliant investment product introduced in Kenya. It caters to investors looking for ethical and halal financial solutions. The fund operates under Islamic finance principles, ensuring that investments do not involve prohibited activities like interest (riba), excessive uncertainty (gharar), or unethical industries such as gambling and alcohol production.

Understanding Shariah-Compliant Investments

Shariah-compliant investments follow strict Islamic financial guidelines. They emphasize ethical investment strategies and prohibit activities that contradict Islamic principles. The three core principles include:

• Prohibition of Interest (Riba): Investors earn profits through profit-sharing models rather than interest-based earnings.
• Avoidance of Uncertainty (Gharar): Transactions must remain clear and transparent.
• Ethical Investments: Investments must align with Islamic ethical values, avoiding industries such as alcohol, gambling, and pork-related businesses.

By adhering to these principles, Shariah-compliant funds provide ethical and sustainable investment opportunities.

How Money Market Funds (MMFs) Work

Money Market Funds (MMFs) invest in short-term, low-risk financial instruments. Their main objectives include:

• Liquidity: Easy access to invested funds.
• Stability: A secure investment option with minimal risk.
• Steady Returns: Competitive returns compared to traditional savings accounts.

MMFs attract conservative investors who want security and consistent returns.

The Emergence of Ziidi Shariah MMF in Kenya

In February 2025, the Capital Markets Authority (CMA) approved the Ziidi Shariah Money Market Fund, managed by Gulfcap Investment Bank. This approval came in response to the rising demand for ethical and Shariah-compliant investment products. The fund provides an inclusive financial solution by allowing Kenyans, regardless of their faith, to participate in halal investing.

Integration with M-PESA

One of Ziidi’s most significant advantages is its integration with M-PESA. This mobile money service enables seamless deposits and withdrawals, making investing more accessible. Key benefits of this partnership include:

• Convenience: Investors can access their funds anytime through M-PESA.
• Low Barriers to Entry: With a minimum investment of KES 100, almost anyone can start investing.
• No Transaction Fees: Deposits and withdrawals between M-PESA and Ziidi MMF do not incur additional charges.
• Real-Time Monitoring: Investors can track their investments via the M-PESA app.

Key Features of Ziidi Shariah MMF

1. Shariah Compliance: The fund strictly follows Islamic finance principles.
2. Low Minimum Investment: Investors can start with as little as KES 100.
3. Unlimited Investment Potential: No maximum limit on investment amounts, but M-PESA transaction limits apply.
4. Zero Transaction Fees: Deposits and withdrawals remain free of charge.
5. Daily Profit Allocation: Profits are calculated daily and credited to investors’ Ziidi wallets.
6. High Liquidity: Investors can withdraw funds instantly through M-PESA.

How to Invest in Ziidi Shariah MMF

1. Registration Process

To register, M-PESA users can:

• Use the M-PESA App.
• Dial *334# Select option 5, Then select option 1 and follow the prompts.
• Provide necessary details for verification if need be.

2. Depositing Funds

• Once registered, investors can transfer funds from their M-PESA wallets.
• The minimum deposit is KES 100, making it accessible to many investors.

3. Earning Profits

• The fund generates earnings through Shariah-compliant investments.
• Profits are calculated daily and credited to investors’ Ziidi accounts.

4. Withdrawing Funds

• Investors can withdraw anytime via M-PESA.
• Withdrawals do not incur additional fees.
• M-PESA transaction limits apply (KES 500,000 daily and KES 250,000 per transaction).

PS: Ziidi Shariah MMF will soon be available to M-pesa Users. We will keep you posted as soon as its services commence.

Benefits of Investing in Ziidi Shariah MMF

1. Ethical and Halal Investment

Ziidi ensures that all investments align with Islamic financial principles, making it suitable for faith-based and ethical investors.

2. Easy Accessibility

With M-PESA integration, investors can easily manage their funds using their mobile phones.

3. Transparency and Security

Investors can track their funds in real-time, ensuring full transparency. Additionally, the fund is regulated by the Capital Markets Authority (CMA), adding a layer of security.

4. Competitive Returns

Compared to traditional savings accounts, the Ziidi MMF offers better returns while maintaining low risk.

5. No Hidden Fees

Since transactions remain free, investors maximize their returns without worrying about deductions.

Challenges and Considerations

While the Ziidi Shariah MMF presents many benefits, investors should also consider:

• Market Risks: As with any investment, there is a potential for lower-than-expected returns.
• Regulatory Changes: Future regulations could impact fund operations.
• M-PESA Limitations: Transaction limits could restrict large investments or withdrawals.

Read: Ziidi Money Market Fund Surpasses KES 6 Billion in Investments

The Ziidi Shariah Money Market Fund represents a groundbreaking development in Kenya’s financial sector. By providing a halal, ethical, and accessible investment option, it caters to both faith-based and socially responsible investors. Its integration with M-PESA further simplifies investment processes, making it easier for Kenyans to grow their wealth in a secure and compliant manner.

For anyone seeking a low-risk, Shariah-compliant investment, the Ziidi Shariah MMF offers a compelling option. Whether you are new to investing or looking to diversify your portfolio, this fund provides a transparent, ethical, and profitable financial solution.