Mali MMF Backed Genghis Capital Loses Sh628M In Just Three Months

Investment bank faces perfect storm of debt crisis, partnership disputes, and mass investor exodus

Genghis Capital, once a rising star in Kenya’s investment banking sector, has suffered a catastrophic blow with its unit trusts hemorrhaging Sh628.5 million in assets during the first quarter of 2025, according to regulatory filings reviewed by this publication.

The Nairobi-based investment bank’s flagship Mali Money Market Fund (MMF), which was initially backed by telecommunications giant Safaricom, bore the brunt of the exodus with assets under management plummeting by Sh479.2 million—a devastating 17 percent drop from Sh2.79 billion in December 2024 to Sh2.31 billion by March 2025.

The financial crisis represents one of the most dramatic wealth destruction episodes in Kenya’s unit trust industry, triggered by a perfect storm of debt crises, partnership disputes, and technical failures that have shattered investor confidence.

The crisis can be traced back to late 2024 when Safaricom, Kenya’s dominant mobile money operator, abruptly terminated its partnership with Genghis Capital over the Mali MMF.

The Capital Markets Authority (CMA) on November 27 last year approved a new unit trust called Ziidi Money Market Fund, effectively replacing Mali as Safaricom’s preferred investment vehicle.

The partnership breakdown was acrimonious. Genghis accused Safaricom of secretly redirecting Mali customers for Ziidi while breaching data laws, allegations that prompted legal warnings from the telecommunications company.

Sources familiar with the matter revealed that the dispute went beyond technical issues.

Top government officials had reportedly expressed dissatisfaction with Genghis Capital over alleged connections to the family of the late President Daniel arap Moi, casting a political shadow over the business relationship.

Safaricom’s decision proved strategically sound. Safaricom’s new money market fund (MMF) has pooled Sh2.85 billion since debuting the market in December last year, demonstrating the telco’s ability to attract investors through its rival platform.

The situation deteriorated further when Mali experienced persistent technical failures.

Mali experienced persistent technical failure that prevented some customers from withdrawing funds or signing up, creating panic among investors who found themselves unable to access their money.

Safaricom had initially blamed Genghis for the fund’s delayed launch, describing the investment bank’s technology platform as “rickety.”

These technical inadequacies would prove prophetic as the system failures contributed directly to the mass investor exodus.

The debt crisis

Genghis Capital’s troubles were compounded by a separate financial crisis involving a South African businessman.

Genghis Capital, a Nairobi-based investment bank, is facing significant financial distress as auctioneers move to sell its office assets to recover a debt of $2.74 million (approximately Sh354.55 million) owed to South African businessman Auswell Mashaba.

The debt saga played out publicly in January 2025 when High Court judge Aleem Visram declined to certify the application by the stockbroker to stop auctioneers from seizing office equipment including furniture, laptops, and printers.

Court documents revealed that Genghis Capital had only paid $1,115,565 (Sh114.35 million) of the total debt, leaving a substantial balance that triggered the auction proceedings.

The Capital Markets Authority was forced to intervene as the crisis threatened investor confidence in Kenya’s unit trust industry.

The Capital Markets Authority (CMA) has directed Nairobi-based investment bank Genghis Capital Limited to submit a plan on how it intends to settle an outstanding $2.74 million (Sh354.4 million) debt.

In a statement designed to calm investor fears, the CMA emphasized that client funds remained secure: “CMA would like to clarify that clients’ assets are held in segregated accounts separate from the funds of Genghis Capital Limited… Client assets managed under Genghis Money Market Fund and Mali Money Market Fund are held by a duly authorised custodian and oversighted by an independent trustee.”

Meanwhile, Safaricom’s Ziidi fund has emerged as the clear winner, attracting investors fleeing the troubled Mali platform.

The new fund’s rapid growth—reaching Sh7.37 billion in assets by March 2025 from Sh1.71 billion in December—demonstrates the market’s appetite for stable, well-managed investment products.

The partnership model behind Ziidi, involving Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, appears to have addressed the structural weaknesses that plagued the Mali fund.

As Genghis Capital grapples with its debt obligations and attempts to restore investor confidence, the broader Kenyan investment industry is taking note.

The investment bank’s CEO Edward Wachira was not available for comment when contacted for this story, but industry observers suggest that Genghis Capital faces an uphill battle to recover from this crisis.