Genghis Capital Accuses Safaricom of Business Fraud Over Money Market Fund Dispute

Kenyan investment bank Genghis Capital has accused telecommunications giant Safaricom of business fraud following the launch of Safaricom’s new money market fund (MMF), Ziidi, in November 2024. The dispute centers around Safaricom’s alleged stalling of their previous joint fund, Mali, in favor of developing a competing product.

In a letter dated December 3, 2024, Genghis Capital claims that Safaricom breached its partnership agreement by delaying the rollout of Mali while secretly working with other partners to develop Ziidi. The Capital Markets Authority (CMA) approved Ziidi on November 27, 2024, positioning it as a direct competitor to Mali.

Genghis alleges that Safaricom’s actions were in bad faith and constituted “business fraud.” According to the investment bank, the telco prioritized Ziidi at the expense of their 2019 partnership, undermining the spirit of their agreement.


Safaricom’s Defense

Safaricom refuted the allegations in a response dated December 6, 2024, attributing delays in Mali’s rollout to technical issues.

“A larger fund with these challenges would not only expose Safaricom to reputational risks, but it could also potentially result in adverse regulatory and legal action for Safaricom and Genghis,” the telco stated.

Safaricom argued that technical challenges with Mali could jeopardize its regulatory compliance and reputation, justifying the delay.

Genghis also accused Safaricom of breaching data protection laws by allegedly migrating Mali customers to Ziidi without obtaining proper consent. The bank claims the migration occurred through Safaricom’s widely used M-Pesa app, potentially violating Kenya’s Data Protection Act.

If substantiated, these allegations could lead to significant regulatory scrutiny and legal consequences for Safaricom, which has positioned M-Pesa as a cornerstone of its financial services.

Despite its challenges, Mali has achieved significant traction. In September 2024, the CMA ranked Mali as the 17th largest collective investment scheme in Kenya, managing assets worth KES3.1 billion ($23.9 million). In the first half of 2024, the fund generated KES11.6 million ($89,748) in revenue for Safaricom.

Safaricom’s launch of Ziidi reflects its aggressive push into Kenya’s wealth management and digital finance markets, leveraging M-Pesa’s popularity to attract more investment clients.

The dispute underscores the growing competition in Kenya’s financial services industry as traditional investment firms like Genghis face increasing challenges from tech giants like Safaricom.

With M-Pesa serving as a gateway to millions of users, Safaricom’s dominance in mobile money gives it a unique advantage in the financial services market. However, this dominance also raises questions about market fairness and compliance with legal and ethical standards.


This case could have far-reaching implications for Kenya’s financial and tech ecosystems. Key areas of concern include:

  1. Data Privacy Violations: If Genghis’s allegations about unauthorized customer migrations are proven, Safaricom could face fines or stricter oversight under Kenya’s Data Protection Act.
  2. Competition Laws: The accusations of stalling Mali to favor Ziidi could attract scrutiny from Kenya’s Competition Authority, potentially resulting in sanctions.
  3. Reputational Risks: Prolonged legal battles could tarnish Safaricom’s image as a trusted financial service provider.

The ongoing dispute between Genghis Capital and Safaricom highlights the tensions between traditional financial institutions and tech-driven disruptors. While Safaricom’s entry into wealth management offers new opportunities for Kenyan investors, it also raises critical questions about fair competition and data privacy.

As regulators and courts weigh in on the case, the outcome could shape the future of Kenya’s fast-evolving digital finance sector. For now, both parties face significant challenges in protecting their interests and reputations in this high-stakes battle.


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