Ziidi by Safaricom: how it works and how to access it (with or without the M-PESA app)

Ziidi is Safaricom's money market savings product launched as part of the M-PESA ecosystem. The core idea: instead of leaving idle M-PESA balance earning nothing, you can opt-in to Ziidi and have that balance invested in a regulated money market fund earning interest-style returns daily. This guide explains how Ziidi actually works, what returns to expect, the fees, and how to use it without the M-PESA app — useful for the many Kenyans on basic phones or who simply prefer USSD.

What is Ziidi?

Ziidi is a partnership between Safaricom and licensed Kenyan asset managers, delivering money market fund (MMF) services through the M-PESA platform. When you deposit into Ziidi:

• Your M-PESA balance moves into a regulated MMF managed by a CMA-licensed fund manager
• The fund invests in low-risk short-term instruments — Treasury bills, commercial paper, fixed deposits
• You earn a daily yield based on the fund's performance
• You can withdraw back to M-PESA balance at any time (subject to fund settlement timing)

This is a meaningfully different product from M-Shwari or KCB M-PESA, which are bank deposit / lending products. Ziidi is investment, not savings — your principal earns market returns rather than a fixed interest rate.

How to access Ziidi

Via the M-PESA app (recommended)

1. Open the M-PESA app and log in
2. Tap "Grow" or the Ziidi tile on the home screen
3. If first time: complete the one-time opt-in (T&Cs, KYC verification, fund manager selection)
4. Choose "Deposit" and enter the amount to move from M-PESA balance to Ziidi
5. Confirm with M-PESA PIN

Without the M-PESA app — via USSD

If you don't have a smartphone, can't install the M-PESA app, or just prefer USSD, the SIM-toolkit menu and USSD code both work for Ziidi:

1. Dial *334# from your Safaricom line
2. Navigate to the option labelled "Ziidi" or "Grow with M-PESA"
3. Choose Deposit, Withdraw, Balance, or Statement as needed
4. Enter the amount and confirm with M-PESA PIN

First-time users may be prompted to opt in via USSD with a brief T&Cs acknowledgement and fund manager selection. The flow is shorter than the app but covers the same actions.

SIM toolkit (M-PESA classic menu)

On most Safaricom SIM cards, the classic M-PESA menu in the SIM toolkit also includes Ziidi access — typically under "M-PESA Services → Grow / Save". The exact menu path varies by SIM software version. If you can't find it, fall back to *334#.

What returns does Ziidi pay?

Returns are not a fixed interest rate. They depend on the underlying money market fund's performance, which is driven by:

• Treasury bill yields (which fluctuate with monetary policy)
• Commercial paper yields
• The fund manager's asset allocation
• Fund fees and Safaricom's service charge

In 2026, typical Kenyan MMF gross yields run 9-13% annualised. After fund management fees and any Safaricom service charge, net yields to the user typically land in the 8-11% annualised range. Returns are paid daily and reflected in your Ziidi balance — you don't wait for a monthly statement.

Ziidi vs M-Shwari vs unit trusts

Ziidi sits between M-Shwari (lower yield but bank-deposit safety) and direct unit trust investment (best yield but harder to access, no instant mobile flow). For most Kenyans, Ziidi is the easier on-ramp to MMF returns.

Fees and charges

• Deposit (M-PESA → Ziidi): Typically free — Safaricom waives the M-PESA paybill fee on Ziidi deposits
• Fund management fee: Built into the yield. Typically 1.5-2% per annum, deducted by the fund manager from gross returns
• Withdrawal (Ziidi → M-PESA): Standard M-PESA send fee may apply on payout. Confirm at the point of withdrawal
• Withholding tax on interest: 15% withholding tax on the interest component, deducted at source per Kenya Revenue Authority rules. The 8-11% net yield mentioned above is post-WHT

How withdrawals work

Withdrawing from Ziidi back to M-PESA balance is generally same-day to next-business-day:

1. Initiate withdrawal via M-PESA app or USSD *334#
2. Enter the amount
3. Confirm with PIN
4. The fund settles the units and transfers funds back to your M-PESA balance — usually within minutes for small amounts, up to T+1 for large amounts

Money market funds are highly liquid by design — they hold short-term instruments precisely so that withdrawals can be met quickly. Unlike a fixed deposit, there's no early-withdrawal penalty.

Who should use Ziidi?

Ziidi makes sense for Kenyans who:

• Hold idle M-PESA balance for days, weeks, or months
• Want better returns than leaving M-PESA at zero interest
• Don't want to commit to a separate brokerage account or unit trust signup
• Value the convenience of mobile-only access
• Are comfortable with low-but-non-zero risk in exchange for higher yield

Ziidi is less compelling for users who:

• Need the money in the next 1-7 days (the fee structure works against very short holds)
• Want guaranteed deposit insurance — M-Shwari is the bank-deposit choice
• Have larger amounts (KES 500,000+) — direct MMF or treasury bill purchase is more efficient
• Want to invest in equity or property — Ziidi is conservative MMF only

KYC and opt-in

First-time Ziidi users complete a one-time KYC verification:

• Confirm National ID number (already on file from your M-PESA registration)
• Confirm date of birth
• Acknowledge fund manager terms and conditions
• Pick or accept the default fund manager partner

The whole process takes 2-3 minutes via USSD or the app. Once opted in, deposits and withdrawals are quick.

Tax treatment

Kenya applies a 15% withholding tax on interest income from money market funds. The WHT is deducted at source by the fund manager — you receive net returns. For tax filing purposes:

• The WHT is typically a final tax for individuals, meaning you don't need to declare the income on your annual return separately
• Companies and partnerships have different treatment — consult your tax adviser
• Annual statements (downloadable from the M-PESA app or USSD) show the WHT deducted, useful for record-keeping

Common issues and how to fix them

1. Cannot find Ziidi in M-PESA menu. Update your SIM toolkit (in some phones, dial *100# and select "SIM Updates") or simply use *334# directly.
2. Deposit fails with "not opted in" message. Complete the one-time KYC acknowledgement first. Usually a separate menu option labelled "Activate" or "Opt In".
3. Withdrawal pending for hours. Large withdrawals (KES 100,000+) can settle T+1. For amounts under KES 50,000, settlement is usually within minutes — if it stalls, contact Safaricom on 100.
4. Balance shows zero earnings after a week. Returns post daily but in small amounts. KES 10,000 at 10% annualised earns roughly KES 2.70 per day. Check monthly for visible balance growth.

FAQ

What is Ziidi?

Safaricom's money market fund product, accessed via M-PESA. You earn daily returns on M-PESA balance moved into Ziidi.

How do I access Ziidi without the M-PESA app?

Dial *334# on your Safaricom line. Navigate to Ziidi in the menu. Works on any phone.

What returns does Ziidi pay?

Typically 8-11% annualised in 2026 (net of fees and withholding tax). Returns vary with market conditions.

What is the minimum deposit?

Very low — typically KES 100 or less. Designed to be accessible for everyone with M-PESA.

Is Ziidi safe?

Low risk but not zero. The underlying MMF is CMA-regulated. Returns are not guaranteed. Ziidi is not deposit-insured the way a bank deposit (M-Shwari, KCB M-PESA) is.

Do I pay tax on Ziidi returns?

Yes — 15% withholding tax is deducted at source. For most individuals, this is a final tax (no further filing needed).

Resources

• Safaricom OneApp explained — broader app context
• Fuliza explained — M-PESA overdraft alternative
• SACCOs vs MMF — different savings vehicles
• Safaricom official site
• Capital Markets Authority — fund regulator