Customers of Kenya’s Safaricom will now be able to buy shares in the 62 businesses listed on the Nairobi Securities Exchange using points from Safaricom’s loyalty program, the telecoms company and the Nairobi Securities Exchange have announced.

“As we focus on the next phase of our journey to go beyond, our aim is to continue transforming the lives of our customers by delivering a wide range of products and services that align with their needs. Through this partnership with NSE, we seek to give our customers more value and utility for their Bonga Points while creating more avenues for driving economic empowerment.”

Here Is What You Need To Know

• Safaricom’s Bonga loyalty program has 16 billion outstanding points among individual and corporate customers, with a total value of more than 4 billion shillings ($37 million).

• Users get one point for every ten shillings spent on Safaricom services, and five of those points will be worth one shilling towards the purchase of shares on the Nairobi exchange under the share purchase scheme.

• The Bonga points can be redeemed through licensed Trading Participants, 10 of which are presently operational. NCBA Capital, Faida Investment Bank, AIB-AXYS, ABC Capital, Old Mutual Securities, Kingdom Securities, Suntra Investments, Francis Drummond & Company, Dyer & Blair Investments, and Sterling Capital are a few examples. More Trading Participants are likely to join in the coming months, Safaricom said in a statement.

• Safaricom customers could previously use Bonga points to pay for air time, phones, and even plane tickets, but the share program sets a global precedent, according to Geoffrey Odundo, CEO of the Nairobi Securities Exchange.

• After Safaricom established the world’s first mobile phone-based money transfer service M-Pesa in 2007, the East African country is regarded as a leader in mobile financial innovations.

• M-Pesa has since evolved to provide services such as microloans, savings, insurance, and even government securities investments.

Safaricom loyalty shares Safaricom loyalty shares

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer