Safaricom’s Mali Money Market Fund (MMF) has grown to Ksh3 billion in assets under management by September 2024, up from Ksh1.3 billion the previous year, according to the telco’s half-year results.
Despite launching as a pilot with a pending full licence, Mali now stands among the top collective investment funds in the market.
The fund’s growth has been driven largely by reinvestments from current unit holders, as new investors are not yet admitted due to its closed-fund status.
Safaricom earned Ksh11.6 million in revenue from Mali over the six months, an increase from Ksh6.2 million in the prior year.
This revenue, representing about 0.36% of the assets managed, hints at a modest share for Safaricom in the MMF, where Genghis Capital currently serves as the sole fund administrator.
The revenue-sharing details for the Mali partnership have not been disclosed by either Safaricom or Genghis Capital.
Safaricom continues to pursue a full licence, which would allow Mali to open up to new investors.
A full licence would also let Safaricom expand its administrative partnerships with additional fund managers, further boosting Mali’s asset base.
“At Ksh3 billion, we’re already among the top collective investment schemes by asset size. We’re expanding, with more announcements coming soon,” said Safaricom’s chief financial officer, Dilip Pal.
As of June 30, 2024, Mali MMF ranks as the fourteenth largest collective investment scheme based on the asset base, according to CMA data.
The fund is anticipated to compete with top industry players such as CIC, Sanlam, NCBA, and Britam by leveraging Safaricom’s extensive customer network, which exceeds 33 million users.
Launched in 2019 and linked to Safaricom’s M-Pesa platform, Mali has operated as a pilot since then.
While the Capital Markets Authority (CMA) recognizes Mali as a collective investment scheme, the fund is still awaiting licensing from the Central Bank of Kenya (CBK) due to its integration with the M-Pesa ecosystem.
Mali is expected to capitalize on Safaricom’s backing and the growing popularity of money market funds among retail investors.
Money market funds typically focus on investments in cash or near-cash assets, such as fixed deposits and Treasury bills.
