Telco giant Safaricom has lost a suit in which it sought to introduce expiry date on customers' loyalty programme, Bonga Points, with the High Court saying the plan was a violation of consumer economic interests. 

The court further termed the October, 2022, decision by the company unconstitutional, null and void. In a ruling dated 22 November 2024, EC Mwita, noted that once Bonga Points are awarded by Safaricom to its subscribers, the points become the customers’ property and the telco, therefore, ceases to have any rights over them.

"The 1st respondent [Safaricom] has no right to change or introduce new terms on the points already earned, including an expiry date," the judgment states in part.

In the petition filed by Dr Magare Gikenyi J Benjamin, the High Court established that Safaricom's loyalty programme that customers would earn Bonga points if they joined the scheme, conferred on them a legitimate expectation which binds the company and from which it cannot turn away to the disadvantage of the consumers. 

On 28th October 2022, Safaricom announced that Bonga Points that had accumulated on customer lines for more than three years were set to expire on 1st January 2023. It added that these points would be unavailable for redemption in whatever manner. 

According to the petitioner, Safaricom's announcement was an ambush to the public and was poised to affect millions of subscribers, who would stand to lose Bonga points worth billions of shillings.

The petitioner noted that having been loyal to Safaricom and accumulated Bonga Points, the subscribers acquired an economic interest. 

"They could, therefore, redeem their Bonga Points as and when they deemed it necessary without being forced to redeem the points immediately or they risked losing the points."

CA accused of complacency

Further, the petitioner accused the industry regulator, the Communications Authority of Kenya of complacency, noting that it failed to intervene given it has a responsibility of protecting consumers.

The court observed that Safaricom's notice, "was a threat to violate consumers’ economic interests and violation of their legitimate expectation."

"It would be ironical for the 1st respondent [Safaricom] to insist on customers continuing to sign up to its service with a promise to earn Bonga Points but fail to live up to its undertaking and walk away by introducing expiry dates to the disadvantage of loyal customers," the court explained.

"An order of certiorari is hereby issued quashing the notice issued by Safaricom PLC on 28th October 2022 purporting to introduce expiry dates on Safaricom Bonga points loyalty programme and non-merchandise Bonga redemption (SMS, minutes and mobile data) service of more than three years," said the Judge.

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