Safaricom and the Nairobi Securities Exchange (NSE) have launched a partnership that would allow Kenyans to invest in stocks using their Bonga points.
Bonga points can now be redeemed by all Safaricom customers through licensed Trading Participants, of which 10 have already been authorized. 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 some of the firms involved. In the future, more trading participants are expected to join.
“As we focus on the next phase of our journey to go beyond, we aim to continue transforming the lives of our consumers by delivering a wide range of products and services that correspond with their needs, We hope that by partnering with NSE, we will be able to provide our customers with more value and utility for their Bonga Points while also expanding opportunities for economic empowerment.” Peter Ndegwa, Safaricom CEO, said of the new partnership with NSE.
Customers can invest by using the Lipa Na Bonga menu on USSD *126# or the MySafaricom App to redeem their points at a cost of Ksh. 1 for every 5 points they have. Customers will then provide the Paybill number of the Trading Participant, followed by the account number of the CDSC (Central Depository and Settlement Corporation).
“Through this initiative, we hope to increase the number of investment options available to investors by providing them with accessible and innovative alternatives. The relationship aligns with our commitment to connect capital to opportunities, as outlined in the NSE strategy plan for 2020-2024.It also gives retail investors a way to engage in the NSE, and it comes at a time when the stock market is recovering from the COVID-19 pandemic,” said Geoffrey Odundo, CEO of the Nairobi Securities Exchange.
Customers that use Safaricom’s products and services are rewarded with the Bonga loyalty program, which was launched in 2007. Customers have accumulated 16 billion points, worth over Ksh. 4 billion, through the scheme, which is open to both retail and corporate customers. For every Ksh. 10 spent on voice, data, SMS, and M-PESA charges, customers earn one point.
Safaricom has improved the Bonga scheme over time by introducing Jisort na Bonga, which allows users to redeem their points for phones and accessories at any Safaricom store or dealer outlet.
Lipa Na Bonga was launched in 2016 to allow users to redeem their points and pay for goods and services from Lipa Na M-PESA merchants all around the country. Customers can also use their points to pay for services including Home Fibre, PostPay, KPLC, GOTV, and DSTV, as well as NHIF and NSSF dues.