Kenya is embroiled in a dispute as investment bank Genghis Capital accuses Safaricom of “business fraud” over the launch of Ziidi, the telco’s latest money market fund. Introduced in November 2024, Ziidi has sparked tensions between the two companies, leading to serious allegations.

The conflict dates back to 2020 when Genghis partnered with Safaricom to launch Mali, a money market fund integrated with M-Pesa. However, Genghis now claims that Safaricom deliberately stalled Mali’s rollout, only to later launch Ziidi in collaboration with different partners. According to Genghis, this move breached their prior agreement and betrayed the trust built since their partnership began in 2019.

In a letter dated December 3, obtained by TechCabal, Genghis accused Safaricom of unethical business practices, alleging that the telco sidelined Mali in favor of developing Ziidi. Safaricom responded on December 6, arguing that Mali faced “technical challenges” that made it risky to scale, potentially exposing both companies to regulatory and reputational risks.

Genghis has also raised concerns over potential privacy violations, alleging that Safaricom transferred Mali customers to Ziidi via the M-Pesa app without obtaining their consent. If these claims hold, Safaricom could face legal scrutiny for violating data protection laws.

Despite these tensions, Mali has not been unsuccessful. By September 2024, it was Kenya’s 17th-largest collective investment scheme, managing $23.9 million (KES 3.1 billion) in assets. It also generated $89,748 (KES 11.6 million) in revenue for Safaricom in just the first half of the year.

This dispute highlights the growing competition in Kenya’s digital finance and wealth management space. While Safaricom continues expanding its investment services through M-Pesa, these accusations and the breakdown of trust could have lasting effects on future industry partnerships.