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)
- Open the M-PESA app and log in
- Tap "Grow" or the Ziidi tile on the home screen
- If first time: complete the one-time opt-in (T&Cs, KYC verification, fund manager selection)
- Choose "Deposit" and enter the amount to move from M-PESA balance to Ziidi
- 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:
- Dial
*334#from your Safaricom line - Navigate to the option labelled "Ziidi" or "Grow with M-PESA"
- Choose Deposit, Withdraw, Balance, or Statement as needed
- 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
- The fund's 2% a year management fee
In 2026, typical Kenyan MMF gross yields run 9-13% annualised. After the management fee, 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
| Feature | Ziidi | M-Shwari | MMF (direct) |
|---|---|---|---|
| Type | Money market fund | Bank deposit (NCBA) | Money market fund |
| Typical yield | ~8-11% | ~6-7% | ~8-12% |
| Min deposit | KES 100 | Very low | KES 1,000-5,000 |
| Withdrawal time | Same-day to T+1 | Instant | T+1 to T+3 |
| Deposit insurance | No (regulated fund) | Yes, KDIC up to KES 500k | No (regulated fund) |
| Mobile-first access | Yes | Yes | Limited |
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): Free. Safaricom says all transfers between your M-PESA wallet and Ziidi are free
- Fund management fee: 2% a year. Safaricom says the return it shows you is already net of this fee
- Withdrawal (Ziidi → M-PESA): Free, for the same reason. The minimum withdrawal is KES 10
- Withholding tax: Safaricom says Ziidi income is subject to 15% withholding tax
How withdrawals work
Withdrawing from Ziidi back to M-PESA balance is generally same-day to next-business-day:
- Initiate withdrawal via M-PESA app or USSD
*334# - Enter the amount
- Confirm with PIN
- 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 (money only starts earning 24 hours after you deposit, so very short holds earn little)
- 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
- 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. - Deposit fails with "not opted in" message. Complete the one-time KYC acknowledgement first. Usually a separate menu option labelled "Activate" or "Opt In".
- 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.
- 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.
Frequently asked questions
What is Ziidi by Safaricom?
Ziidi is a money market fund you use through M-PESA. You move M-PESA balance into Ziidi and it earns a return every day. The fund is regulated by the Capital Markets Authority.
How do I access Ziidi without the M-PESA app?
Dial *334# on your Safaricom line and go to Ziidi in the menu. It works on any phone.
What returns does Ziidi pay?
Typically 8 to 11 percent a year in 2026, after the management fee and withholding tax. Returns change with market conditions.
What is the minimum deposit?
KES 100 to invest and KES 10 to withdraw, according to Safaricom's Ziidi FAQ.
Is Ziidi safe?
Low risk but not zero. The fund is CMA-regulated and 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, and for most individuals it is a final tax, so there is nothing more to file.
Resources
- Safaricom OneApp explained, broader app context
- Fuliza explained, M-PESA overdraft alternative
- SACCOs vs MMF, different savings vehicles
- Money market funds hub: other MMFs, their paybills and tax
- Safaricom official site
- Safaricom Ziidi FAQ (last updated 15 July 2026)
- Capital Markets Authority, fund regulator