Mali MMF, a money market fund managed by Genghis Capital, experienced a significant surge in fund withdrawals yesterday following the circulation of unsubstantiated rumors on social media. These unverified claims alleged that the company owed 345 million Kenyan Shillings and faced imminent asset seizure.
In response, Mali MMF issued a direct message to its investors, reassuring them that all funds are securely held by a custodian and overseen by an independent trustee.
This incident follows a public dispute in December between Genghis Capital and Safaricom. Genghis Capital accused Safaricom of engaging in malicious business practices, including allegedly redirecting Mali MMF investors to Ziidi, a competing money market fund launched by Safaricom. Safaricom denied these allegations, stating that Ziidi was not yet launched at the time of the public notice and that their partnership with Standard Investment Bank, ALA Capital, and Sanlam Investments aimed to provide investors with alternative options.
The Capital Markets Authority (CMA) issued a statement clarifying that investors’ assets are held in segregated accounts, separate from the funds of Genghis Capital Limited.
Financial experts advise investors to remain calm and seek official communication directly from Mali MMF. They caution against making hasty decisions based on unverified online information and urge investors to await further official clarification from Mali MMF’s management.
