Safaricom’s Mali unit trust, managed by Genghis Capital, has reached a notable milestone with its asset base hitting Sh1.4 billion by December 2023. Since its establishment in 2019, Mali has emerged as a significant player in Kenya’s financial landscape, offering a collective investment scheme integrated with Safaricom’s M-Pesa platform.
The latest disclosures reveal Mali’s robust financial performance, contributing Sh104.5 million to Genghis Capital’s income primarily through interest earnings. Notably, Mali’s investment portfolio emphasizes diversification, with a significant portion allocated to fixed deposit accounts, totaling Sh885.4 million, alongside government securities, short-term deposits, and corporate bonds.
Mali’s accessibility is a key highlight, allowing M-Pesa customers to invest with minimal amounts starting from Sh100 via the M-Pesa app or USSD code *334#. Moreover, the platform offers free deposits and withdrawals, catering to both smartphone and feature phone users.
Operating under the regulatory oversight of the Capital Markets Authority (CMA), Mali ensures compliance with industry standards, including a 15% withholding tax rate on interest earnings. Operational expenses, such as custodian, trustee, and marketing fees, are duly accounted for, enhancing transparency and investor confidence.
Mali’s success contributes to Kenya’s collective investment scheme ecosystem, comprising 36 entities managing 135 funds, with total assets under management amounting to Sh215 billion. This achievement underscores Safaricom’s commitment to fostering financial inclusion and innovation, empowering individuals to participate in wealth creation.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
8th April, 2024
