Blow for telcos as court bars setting expiry of reward schemes

Peter Ndegwa, CEO Safaricom PLC speaking during an event held at Safaricom Headquarters in Nairobi. [File, Standard]

Companies will have to rethink how they reward their customers for loyalty or sink in billions gifted over time.

This is after the High Court declared that companies do not own rewards once passed to customers and cannot expire.

At the same time, Justice Chacha Mwita declared that companies have no say on when and how customers can redeem the rewards they accumulate. He said that companies cannot change the rules of the game midstream nor can they move the goalposts whenever a customer joins the programme.