The High Court has nullified Safaricom’s attempt to impose expiry dates on its loyalty program, Bonga Points, marking a significant win for consumer rights.
Justice Chacha Mwita ruled that the company had no authority to alter the terms of already-earned points, deeming the October 2022 notice unconstitutional.
The court held that Bonga Points, once awarded, belong to customers and cannot be arbitrarily restricted.
“Safaricom has no right to change the terms and introduce new expiry dates on the already earned points, including those slated to expire in January 2023,” Justice Mwita stated.
He added that the move threatened consumers’ economic interests and violated their legitimate expectations.
The controversial notice, issued in October 2022, sought to enforce a three-year expiration policy on Bonga Points.
Under the directive, points accumulated before December 31, 2019, would have expired by January 2023.
The decision faced immediate backlash, culminating in a lawsuit filed by Nakuru-based surgeon Dr. Benjamin Gikenyi.
Dr. Gikenyi argued that the policy was introduced without input from Safaricom’s 40 million subscribers, risking the loss of over Sh4.5 billion in unredeemed points.
He accused the telecommunications giant, the Communications Authority of Kenya, and the Attorney General of disregarding consumer rights.
Safaricom defended its stance, asserting that participation in the loyalty program was voluntary and governed by agreed terms.
The company emphasized that customers could opt out if dissatisfied. However, the court sided with the subscribers, emphasizing their entitlement to the “rights and privileges” attached to the loyalty points.
The Bonga Points program, launched in 2007, rewards Safaricom subscribers for spending on the network.
Points are earned for expenditures on voice, data, SMS, and M-Pesa transactions and can be redeemed for airtime, data, or goods.
