Safaricom has announced a partnership with the Nairobi Securities Exchange (NSE) to enable Kenyans invest in stocks using their accrued Bonga points.
All Safaricom customers can now redeem their Bonga points through licensed Trading Participants, with ten already activated. These 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. More Trading Participants are expected to join going forward.
Commenting on the new partnership with NSE, Peter Ndegwa, Safaricom CEO said, “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.”
To invest, customers will redeem their points at a rate of Ksh. 1 for every 5 points they have via 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.
“Through this initiative, we intend to unlock more investment opportunities to investors 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. 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,” said Geoffrey Odundo, CEO Nairobi Securities Exchange.
The Bonga loyalty scheme was introduced in 2007 to reward customers for using Safaricom’s products and services. The scheme has seen both retail and corporate customers accumulate 16 billion points, valued at over Ksh. 4 billion. Customers accumulate a point for every Ksh. 10 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 at any Safaricom shop or dealer outlet. The introduction of Lipa Na Bonga in 2016 enables customers redeem their points and pay for goods and services at Lipa Na M-PESA merchants countrywide. Customers can also use their points to settle utility bills such as Home Fibre, PostPay, KPLC, GOTV and DSTV as well as NHIF and NSSF dues.