Safaricom is making headway into the investment space with a product announced three years ago, Safaricom Mali. Swahili for wealth, Mali will allow M-PESA users to invest and earn a 10 percent annual interest, which will accrue daily.
A MALI Account means a unit trust Account held by a customer in the Fund and which is opened and operated by Genghis Capital Limited. The new product, which caps savings at KSh 300K a day, allows for savings of as low as KSh 100.
How to Invest With Safaricom MALI
Customers will invest money through USSD code *230 # or via the services tab in the M-PESA App.
By opting in, you confirm you are at least eighteen (18) years old. You also have to be a registered and active M-PESA Subscriber for at least three (3) months before opening a MALI M-PESA account.
Units are traded at the daily ruling price and will be repurchased by the fund administrator, Genghis. Once an account has been opened, a statement of investment will be sent to you and subsequently monthly via email. Copies of statements are available on request from the MALI Mpesa Menu or the Safaricom App. The customer will also be able to query account status on the phone.
All third-party costs associated with the administration of the Fund will be charged to the Fund. These will include, but are not limited to, the fund management fees, Custodian and Trustee Fees, marketing, and fund administration fees.
They set these costs out as:
- Fund Manager’s Fees – 2.0% per annum;
- Withholding Fee – Government will charge the customer a 15% withholding tax on the investment fund and not on the interest earned from the investment.
- Trustee Fees – 0.20% per annum
- Custodial Fees – 0.15% per annum subject to a minimum fee of KES 10,000/= per month.