Safaricom’s Mali Investment: Is It Worth It?

1. Management Fees: These are charged by fund managers like Genghis Capital, who actively manage the investment. Mali incurs a management fee of 2% per annum.

2. Trustee Fees: KCB Bank acts as the trustee, overseeing the assets within the investment. Their fee stands at 0.2 % per annum.

3. Custodial Fees: Often overlooked, custodial fees are for safeguarding assets. Safaricom’s Mali carries a custodial fee of 0.15 % per annum.

4. Withholding tax: You will pay 15% withholding tax on any interest (tax is on the interest not on the amount you deposited) you earn from your investment.

Consider making an investment of 100,000 Kenyan Shillings. A portion of your investment is deducted after management, trustee, and custodial expenses are taken into consideration.

If you invest 100,000 Kenya Shillings you will make a profit of around 6,000 in a year which is roughly 500 per month.

Lemme break it down. If the Mali Interest rate is 10%. Then you should be getting 10,000 at the end of the year.

100,000- Amount you deposited to the Mali Account

10% – interest rate

That is 100,000 X 10%=10,000

Now there is a management, custodial and trustee fee plus the withholding tax.

Management fee- 2% per annum (year)

Custodial fee-0.15% per annum (year)

Trustee fee- 0.2% per annum

Witholding tax- 15% on the interest rate

So the total fees are: 2%+0.15%+0.2%=2.35%

2.35% X 100,000= 2350

Then the withholding tax of 15% on the interest rate which in this case will be 10,000 will be 1500

2350 and 1500 will be deducted from your deposit. That’s a total of 3850.

Final profit will be 10,000-3850=6150

IF you deposit 100, 000 at a 10% interest rate you will make a final profit of 6150.

Description	Value
Initial Investment Amount	100,000 KES
Interest Rate (Mali)	10%
Total Interest Earned	10,000 KES
Management Fee (2% per annum)	2,000 KES
Custodial Fee (0.15% per annum)	150 KES
Trustee Fee (0.2% per annum)	200 KES
Withholding Tax (15% on interest)	1,500 KES
Total Fees Deducted	3,850 KES
Final Profit	6,150 KES

This table breaks down the investment scenario and the associated calculations.

These numbers may not be the best but its better than letting your money sit in M-shwari.

It’s not all bad news, though; the investment pays out, usually with a 10 percent dividend.

There is a sting in the tail, though: withholding tax. This tax further lowers your returns; it is fixed at fifteen percent of the interest earned.

It is still possible to make money investing in Mali despite these deductions. Comprehending the fees enables investors to make knowledgeable choices and prevents them from being taken aback by unforeseen expenses.

Partnerships and Regulation

Safaricom has teamed up with Genji’s Capital, a respectable participant in Kenya’s financial services industry, to guarantee Mali’s success.

Safaricom has put together a strong team to realize Mali, with KCB acting as the custodial bank and Genji’s Capital acting as the fund manager.

Furthermore, Mali is governed by the Capital Markets Authority (CMA), which guarantees adherence to laws and safeguards investors.

Accessible Investment for All

Mali is quite attractive because it’s easily accessible. Customers of Safaricom can invest in Mali with as low as 100 Kenyan Shillings, democratizing the market for investments for people of various financial backgrounds.

Users may easily handle the investment process by utilizing the M-Pesa app or by phoning *230#, which removes the entry obstacles that are typically connected with investing.

Flexible Investment Options

Mali provides a variety of investment opportunities, such as diversified instruments and debt securities.

The choice to invest in debt securities offers a sense of security and the guarantee that the principal amount will be preserved, especially for investors who are risk averse.

Furthermore, Mali offers investors flexibility and liquidity by enabling them to withdraw whole or partial sums at any time.

Transparent Fee Structure

Openness and honesty are crucial to Mali’s activities. Even though Safaricom has done away with transaction fees, investors are still encouraged to educate themselves about the associated charges to ensure complete transparency throughout the investing process.

Investors can better align their financial goals by making educated judgments by having a clear understanding of the fee structure.

Competitive Returns- (Not so much really-the fees eat into it)

Mali provides attractive yields in comparison to other investment options and traditional savings accounts, with a yearly return of 10%.

Investors can earn their income every day, enhancing their potential returns over time, even though the interest is compounded annually.

With Kenya’s financial landscape, this alluring offer presents Mali as a promising investment prospect.

What are the channels for accessing MALI?

The service is available on the M-PESA Super App under GROW and on USSD *334#, option 5.

How do I register for Mali?

Sure, here are the steps in bullet points:

– On the M-PESA App:

– Go to Financial Services

– Select MALI

– Acknowledge accepting T&Cs by Tapping on the Opt In tab

– Enter M-PESA PIN

I tried in 2/05/2024 but they weren’t accepting any more customers

– Alternatively, Dial *334#:

– Select 5. Financial services

– Select 0. MALI

– Select Accept the T&Cs

– Enter M-PESA PINWhat interest do I earn for investing in MALI?

Investing in MALI will give a competitive annual return. The interest is computed and compounded daily.

How much does the government charge on the interest earned on the investment?

You will pay 15% withholding tax on any interest (tax is on the interest not on the amount you deposited) you earn from your investment.

Consequently, interest that has been deposited into your investment account is already net of these expenses.

What are the transaction charges for using MALI?

Customers’ deposits and withdrawals from the MALI account will be free.

Can I deposit or withdraw funds from MALI directly to an agent or to the bank account?

No. Customers will invest funds from their M-PESA accounts and or withdraw funds from their MALI accounts to their M-PESA accounts.

What is the transaction limit for MALI?

In Mali, there is no upper limit on investment. Nonetheless, the Ksh. 500,000 daily M-PESA transaction limit and the Ksh. 250,000 per transaction limit are in effect. Kshs. 100 is the minimum amount to invest, while Kshs. 10 is the minimum amount you can withdraw.

What happens if I want to withdraw an amount above Kes.500,000 in a day?

The request will fail, and you will receive a message indicating the transaction range.

What document should I provide for the next of Kin claims?

The person whose information you update on MALI is called the “next of kin,” and they have access to your finances in the event of an incapacitating event like illness, mental instability, or death.

The following paperwork will be supplied by the client (next of kin):

A duly filled Mali next of kin claim of funds form
Identification document (ID)
Death Certificate
Grant of Probate/Letter of Administration
Letter from local Administration ascertaining the heir.

Which channel should I use to make Next of Kin claims?

You’ll be required to visit the nearest Safaricom Retail shop or care desks for assistance with processing Next of Kin claim.

Can I change ownership of my Mali Account to my Next of Kin?

No.

The ownership of your MALI account cannot be altered.

If you ever need to switch the ownership of your line, you’ll have to take all of your money out, choose not to participate in MALI, and follow the present procedures to modify the MSISDN and/or account information.

They will be eligible to Opt In to MALI and take advantage of its services following the successful transfer of ownership of the MSISDN and the collection of your Next of Kin details.

To take advantage of MALI’s services, the line’s new owner must choose to join it.

What happens if I attempt to close an account with funds?

An alert advising you to take all the money out before opting out of MALI will be sent to you.

If you decide to take money out of your account and close it, the money will be sent to your M-PESA account automatically, and your desire to opt out will be fulfilled.

How can I claim funds from a recycled SIM card?

To claim funds from a recycled SIM card, you will be required to fill in a claim form and present your ID at the Safaricom Retail shop or Customer Care desks

Where do I get support for MALI?

Customers can:

Visit the Safaricom Retail Center/Customer Care Desk
Call the Safaricom Contact Center at 100/200 for support and inquiries
Send an email to customercare@safaricom.co.ke

It’s important to remember that costs are subject to change and can fluctuate. Nonetheless, investors can move through the investment landscape with greater assurance if they understand the basic costs related to Mali.

In conclusion, it would be wise to investigate the possibility of investing in Safaricom’s Mali. To make wise financial decisions for the future, you must, however, be aware of the associated costs. Recall that when it comes to investing, information truly is power.

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