The High Court ruling has declared Safaricom PLC’s attempt to introduce expiry dates for its Bonga loyalty points and related services as unconstitutional and a violation of consumer rights. The judgment, delivered by Justice E. C. Mwita on November 22, 2024, struck down Safaricom’s October 28, 2022, public notice announcing the change, stating it infringed on legitimate consumer expectations and economic interests.
In a decisive rebuke to the telecommunications giant, Justice Mwita noted that Safaricom’s decision to impose expiry dates of more than three years on Bonga points “was a violation of consumer economic interests thus unconstitutional, null, and void.” The judgment emphasized that loyalty points earned by customers are their property and cannot be unilaterally withdrawn or altered in terms of redemption conditions.
The court further ruled that Safaricom breached its obligation to customers by failing to honor the legitimate expectations created by its initial representation. “By representing to customers that they would earn Bonga points if they joined the loyalty program, Safaricom conferred on the consumers a legitimate expectation,” stated the judgment. Introducing new terms retroactively “turned away to the disadvantage of consumers,” it added.
The court issued orders of prohibition against Safaricom, barring the company from enforcing its notice to introduce the expiry dates. It declared that Safaricom must uphold the rights of its customers as initially agreed upon in its loyalty program.
Consumer advocacy groups have hailed the ruling as a significant win for customer rights in Kenya. Analysts suggest the judgment could compel other companies to re-examine their loyalty schemes and ensure compliance with consumer protection laws.
Safaricom has yet to issue a public response to the ruling.
