Categories: AfricaBusiness

Fight Over M-PESA Unit Trusts Erupts Between Safaricom and Investment Bank

Safaricom and Investment Bank Genghis Capital have generated dispute between them, over M-Pesa-backed unit trusts, following Safaricom’s launch of the Ziidi Money Market Fund with new partners.

This comes, at a time when Safaricom’s existing Mali fund with Genghis has accumulated Sh3.1 billion in assets. Filing a protest letter on December 3, 2024, Genghis accused Kenya’s Telco of customer redirection and data breach, with the conflict centering mainly on Safaricom’s newly approved Ziidi fund partnership with Standard Investment Bank, ALA Capital, and Sanlam Investments, while Mali, launched in 2019.

Photo| Business Daily Newspaper Front Page

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Safaricom, however, has come out on the limelight to defend the new fund, citing its potential to provide market alternatives and justifying that Genghis has unstable technical platform which is the reason for Mali’s delayed launch, which is still at the pilot phase despite being launched in 2019.

The Mali fund, ranked 17th largest among collective schemes, has invested Sh1.5 billion in fixed deposits and Sh595.9 million in government securities, earning Safaricom Sh11.6 million in revenues.

Branislav Moses Opudo

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