Using Bonga Points To Buy shares: Safaricom (NSE: SCOM) and Nairobi Securities Exchange (NSE) on 9th August announced a partnership that enables Kenyans to invest in stocks using their accrued Bonga points. The service is available to all Safaricom customers, who can redeem their points through licensed trading participants, with 10 of them already activated.
They include 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 Ltd. More trading participants are expected to join in due course.
“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,” said Mr Peter Ndegwa, Chief Executive Officer, Safaricom. “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.”
To invest, customers will redeem their points at a rate of Ksh1 for every 5 points through the ‘Lipa Na Bonga’ menu on USSD *126# or MySafaricom App. Customers will then key in the Trading Participant’s paybill number followed by their CDSC (Central Depository and Settlement Corporation) account number.
Nairobi Securities Exchange CEO Geoffrey Odundo said through this initiative, the NSE seeks to unlock more investment opportunities using convenient and innovative solutions. “The partnership resonates with our resolve to connect capital with opportunities as anchored in the NSE 2020-2024 strategic plan,” Mr Odundo. “It further provides an avenue for retail investors to participate in the NSE and is coming on the backdrop of the stock market’s recovery following the COVID-19 pandemic.”
The Bonga loyalty scheme, which was introduced in 2007 to reward customers for using Safaricom’s products and services, has seen both retail and corporate customers accumulate 16 billion points, valued at over Ksh4 billion. Customers earn a point for every Ksh10 spent on voice, data, SMS and M-PESA charges.
Over the years, Safaricom has enhanced the Bonga scheme through ‘Jisort na Bonga,’ which empowers customers to redeem their points for phones and accessories and the introduction of ‘Lipa Na Bonga’ in 2016 for customers to redeem their points and pay for goods and services at Lipa Na M-PESA merchants.
Customers can also use their points to settle utility bills such as Home Fibre, PostPay, Kenya Power, GOtv and DStv as well as NHIF and NSSF dues.
