Money Market Funds (MMFs) are increasingly becoming the go-to investment option in Kenya thanks to their balance of attractive returns, low risk, and liquidity. Among the newest entrants is the Ziidi Money Market Fund (Ziidi MMF), which has quickly attracted massive investor interest. In this article, we review the latest Ziidi MMF interest rates, explore the factors shaping these returns, and compare how the fund stacks up against other MMFs in Kenya.
Whether you’re a seasoned investor or just exploring MMFs for the first time, this guide will help you make smarter, well-informed financial decisions.
Understanding Money Market Funds
A Money Market Fund (MMF) is a type of mutual fund that invests in short-term, high-quality debt instruments such as:
- Treasury bills
- Commercial papers
- Certificates of deposit
These funds are designed to provide stability, steady returns, and easy access to cash—making them more rewarding than traditional savings accounts while still maintaining safety.
Overview of Ziidi Money Market Fund
Launched in December 2024, the Ziidi Money Market Fund is a collaborative initiative by Safaricom, Standard Investment Bank, and ALA Capital Limited.
The fund integrates seamlessly with M-PESA, making it easy for Kenyans to start investing with as little as KES 100. By January 2025, Ziidi MMF had already attracted over 450,000 investors and was managing assets worth more than KES 2.85 billion—a strong sign of trust and adoption in just its first month.
Read: Why Ziidi MMF Interest Rates Are Falling and How Investors Can Adapt
Key Features of Ziidi MMF
- Low Entry Point: Start investing from just KES 100.
- Integration with M-PESA: Hassle-free deposits and withdrawals directly from your phone.
- Daily Interest Accrual: Interest is calculated daily, giving investors visibility on growth.
- Regulatory Oversight: Licensed and regulated by the Capital Markets Authority (CMA) for transparency and investor protection.
Read: Safaricom’s Ziidi Money Market Fund Attracts Kshs. 2.85 Bn in First Month
Updated Ziidi MMF Interest Rates – February 2025
As of 21 February 2025, the Ziidi Money Market Fund is offering:
- Annual Percentage Yield (APY): 11.30%
- Net Return: 9.61%
This performance places Ziidi MMF among the most competitive funds in Kenya, making it attractive to both new and experienced investors.
What Influences Ziidi MMF Interest Rates?
Several factors affect the returns you earn on Ziidi MMF:
- Central Bank of Kenya (CBK) Monetary Policy
- CBK’s benchmark rate directly impacts MMF yields.
- In December 2024, CBK reduced the rate to 11.25%, marking the third consecutive cut to stimulate growth.
- Inflation Trends
- As of November 2024, inflation was at 2.8%, contributing to slightly lower yields across MMFs.
- Market Liquidity
- High liquidity in financial markets often pushes yields downward as demand for short-term securities rises.
- Fund Management Strategy
- Ziidi MMF benefits from the expertise of Standard Investment Bank and ALA Capital in allocating funds for optimal returns.
Regulatory Updates in Kenya’s MMF Market
The Capital Markets Authority (CMA) has strengthened the investment environment by:
- Approving Shariah-Compliant Funds: In February 2025, CMA approved the Ziidi Shariah Money Market Fund, expanding access for investors seeking Islamic finance products.
- Enhancing Investor Protection: Strict oversight ensures MMFs like Ziidi maintain transparency and compliance.
Why Choose Ziidi Money Market Fund?
- Higher Returns than traditional savings accounts.
- Liquidity: Easy access to cash via M-PESA.
- Low Risk: Backed by government securities and high-quality instruments.
- Inclusivity: Open to everyday Kenyans with low starting capital.
FAQs on Ziidi Money Market Fund
What is the current interest rate for Ziidi MMF in 2025?
As of February 21, 2025, Ziidi MMF offers an APY of 11.30% and a net return of 9.61%.
How much do I need to start investing in Ziidi MMF?
You can start investing with as little as KES 100 through the M-PESA platform.
Is Ziidi MMF regulated?
Yes, Ziidi MMF is licensed and regulated by the Capital Markets Authority (CMA), ensuring compliance and investor protection.
How do I withdraw my money from Ziidi MMF?
Withdrawals are processed seamlessly through M-PESA, making funds accessible within a short time.
What makes Ziidi MMF different from other MMFs in Kenya?
Its integration with M-PESA, low entry point, and fast adoption rate make Ziidi MMF stand out. By January 2025, it had over 450,000 investors and KES 2.85 billion AUM in just one month.
Is there a Shariah-compliant Ziidi MMF option?
Yes. In February 2025, CMA approved the Ziidi Shariah Money Market Fund to serve investors seeking Islamic finance solutions.
Final Thoughts
The Ziidi Money Market Fund (Ziidi MMF) is proving to be a reliable choice for Kenyans seeking low-risk, high-return investment opportunities. With updated February 2025 rates of 11.30% (APY) and 9.61% (net return), it stands out as a strong competitor in the MMF space.
Whether you’re saving for emergencies, planning short-term goals, or diversifying your portfolio, Ziidi MMF combines convenience, safety, and growth.
