This archive report was first published on 13 July 2020.
Published on July 13, 2020, Safaricom's unclaimed customer loyalty awards, known as Bonga points, reached Sh3.94 billion in March 2020.
The value of unclaimed Bonga points rose from Sh3.85 billion in the previous year, despite the telco offering increased options for customers to use the points, including paying for air tickets, shopping, fuelling cars, and repaying education loans.
One billion points valued at Sh301 million were redeemed in the two months to June 4 through the Bonga for Good initiative, which was launched on April 3 to help customers purchase goods and services during the economic disruption caused by the Covid-19 pandemic.
Safaricom has been pushing for points redemption, as they are accounted for as a liability or deferred income in the telco's books and only recognised as revenue once customers utilise them.
“Management defers revenue for every point accumulated and recognises the revenue relating to the points earned on redemption,” says Safaricom in its latest annual report.
The Bonga points scheme, introduced in January 2007, gives subscribers one point for every Sh10 spent, and when the points build-up, they tie up revenue for the telco until redeemed.
