The verdict in three sentences
In Kenya, a clear returns policy cuts disputes and lifts conversion, even though a momo refund takes 1 to 5 days. The real choice is not "refund or not" but "refund to wallet, store credit or exchange". Store credit, adopted by 30-50 % of customers, protects your cash flow while keeping the buyer happy.
The three refund modes compared
Each option has a different cost and effect on cash flow and loyalty.
| Mode | Timing | Cost to you | Keeps cash |
|---|---|---|---|
| Wave / OM reversal | 1-5 days | Reversal fees | No |
| M-Pesa reversal | 1-3 days | Reversal fees | No |
| Store credit | Immediate | 0 | Yes |
| Direct exchange | Logistics cost | 1,000-3,000 FCFA | Yes |
Offer store credit or exchange first: 30 to 50 % of customers accept it, which keeps revenue with you and avoids reversal fees.
The RMA workflow that cuts disputes
A structured returns process (RMA) drops the dispute rate and reassures before purchase.
| Policy element | 2026 order of magnitude |
|---|---|
| Return window | 7-14 days |
| Reverse logistics cost | 1,000-3,000 FCFA |
| Momo refund timing | 1-5 days |
| Restocking fee | Legal if disclosed (5-15 %) |
| Store credit adoption | 30-50 % |
| Dispute rate before clear policy | 8-12 % |
| Dispute rate after clear policy | 2-4 % |
Showing the policy on the product page and at checkout is the most profitable lever: it turns a barrier into a selling point.
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Mini case study
Wanjiru runs a fashion store in Nairobi: 220 orders per month, 12 % returns (26 returns). Before, she refunded everything to M-Pesa: 26 reversals, fees and 1,800 FCFA of reverse logistics each, plus cash walking out. By setting a 10-day window with store credit first, 45 % of customers accept credit: 12 returns stay in-store, i.e. about 300,000 FCFA of revenue retained per month. The dispute rate falls from 10 to 3 %, and clearly stating the policy lifts her conversion from 6 to 7 %.
FAQ
Does a returns policy really sell more? Yes: showing a clear rule moves the dispute rate from 8-12 % to 2-4 % and reassures buyers before purchase. It is a conversion argument, not just a cost.
How long does a momo refund take? Plan 1 to 5 days for a Wave or Orange Money reversal, 1 to 3 days for M-Pesa. Communicate this timing clearly to avoid follow-ups and disputes.
Store credit or cash refund? Offer store credit first: 30 to 50 % of customers accept it, which keeps revenue with you and avoids reversal fees. A cash refund remains a right to offer.
Can I charge restocking fees? Yes, if disclosed in advance in the policy: 5 to 15 % is common. Undisclosed, they trigger disputes and damage reputation.
What return window should I choose? 7 to 14 days is the standard. Too short and you lose trust; too long and reverse logistics plus tied-up stock get expensive.
Let's talk about your project. We draft your returns policy and wire the RMA workflow with store credit and momo reversals. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
