Kenya’s largest telco, Safaricom, is facing scrutiny over the uncertain fate of Mali, its first money market fund launched in 2020.

As the company aggressively promotes Ziidi, its newly launched replacement, customers are being left in the dark about Mali’s status.

Ziidi, which received regulatory approval in November 2024, is a partnership between Safaricom, Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited.

Despite its rollout being marred by controversy, Ziidi has already recorded over one million sign-ups and over KES 6 billion ($46 million) in funds.

However, some users allegedly migrated from Mali without their consent, sparking a legal dispute with Mali’s fund manager, Genghis Capital.

In December 2024, Genghis Capital accused Safaricom of orchestrating 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 failures that prevented 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 the company has refused to comment on the status of Mali. Genghis Capital has also been tight-lipped about the dispute.

By September 2024, Mali was Kenya’s 17th-largest collective investment scheme, managing KES 3.1 billion ($24 million) in assets and generating KES 11.6 million ($89,000) for Safaricom in the first half of the year.

Kenya’s investment funds have seen significant growth, 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).

The fate of Mali remains uncertain, leaving customers and investors wondering about the future of the fund, as Safaricom continues to promote Ziidi.