Safaricom Bonga Points To Expire From January 2023

Safaricom has introduced an expiry date to its loyalty program, known as Bonga Points, in an effort to encourage redemption and unlock the underlying revenue, which totaled Sh4.5 billion as of March this year.

The publicly traded telco has informed customers that all unredeemed Bonga points will now expire after three years, which means that those accumulated before December 31, 2019, will expire on January 1, 2023.

Safaricom described the decision to make loyalty points expire as a business decision to encourage redemption.

“Effective January 1, 2023, all Bonga points older than three years will expire and will be unavailable for redemption,” said Safaricom in updated terms and conditions for the loyalty programme.

“Your Bonga points will also expire immediately in the event that your line has been deleted as a result of inactivity and in accordance with the terms and conditions for the use of the Safaricom services.”

The loyalty points are recorded in Safaricom’s books as a liability, or deferred income, and are only recorded as revenue when customers redeem them for airtime, SMS, merchandise, or shopping.

The company also considers loyalty points on discarded SIM cards as revenue.

Safaricom recognizes airtime revenue using the same concept. Customers’ prepaid airtime is held as deferred revenue until they use it.

The loyalty program, launched in January 2007, awards subscribers one Bonga point for every Sh10 spent on the Safaricom network on voice, mobile data, and SMS, and one Bonga point for every Sh100 spent on the network for M-Pesa transactions.

Business customers earn loyalty points when they meet their sales targets and redeem them when their revenue contracts with Safaricom are completed.