Nairobi — A formal complaint has been filed with the Competition Authority of Kenya (CAK) against Safaricom over an exclusive zero-rated transaction arrangement with the Ziidi Money Market Fund (Ziidi MMF), a digital investment product offered through M-Pesa.
The complaint, lodged by investor Edwin Dande through IC Law Advocates, alleges that Safaricom's preferential treatment of Ziidi MMF violates sections 21 and 24 of the Competition Act by distorting competition in Kenya's retail investment market.
The arrangement allows Ziidi users to deposit and withdraw funds via M-Pesa without incurring transaction fees--a benefit not extended to competing funds such as Cytonn and Etica.
According to the complaint, the exclusive fee waiver constitutes a restrictive trade practice that "applies dissimilar conditions to equivalent transactions," and limits market access for rival funds. Data included in the submission shows that clients of Cytonn and Etica pay between Sh5 and Sh108 for similar transactions that Ziidi investors can execute for free.
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Safaricom's dominance in the mobile money market--where M-Pesa holds a market share exceeding 98%--is central to the case. The complainant argues that M-Pesa functions as an essential platform for financial services in Kenya, and that exclusive arrangements involving such infrastructure must be scrutinized for potentially abusive market behavior.
The complaint further cites Section 24 of the Competition Act, which prohibits dominant undertakings from abusing their position. It accuses Safaricom of leveraging its control of M-Pesa to extend market dominance into the unit trust investment sector through its alignment with Ziidi MMF.
Additionally, the complainant warns of broader consequences including reduced innovation, consumer choice, and a stifled fintech investment environment. By offering zero transaction costs only to Ziidi, the complaint argues, Safaricom has created a market imbalance where cost savings--not fund performance or features--determine consumer preference.
The petition urges CAK to launch an investigation and seek remedial action, including the termination of the exclusive arrangement and the imposition of penalties under the Competition Act. It also calls for interim relief to halt the disputed conduct while the case is under review.
Safaricom has not publicly responded to the allegations. CAK is yet to confirm whether it will initiate a formal investigation.
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This case marks a significant test of Kenya's competition law enforcement in the digital finance sector, where mobile payment platforms are becoming critical infrastructure for consumer services beyond traditional banking.
