PayU Kenya Shuts Down Operations Following Licence Revocation
The Kenyan fintech landscape has seen a significant shift as PayU Kenya Limited, the local subsidiary of the global payments giant PayU, has officially ceased its operations. This closure comes in the wake of its licence being revoked by the Central Bank of Kenya (CBK), a decisive action that followed the company’s prior entry into voluntary liquidation. The shutdown highlights the formidable challenges international payment solutions face in an intensely competitive market, particularly one heavily influenced by established local players and robust mobile money infrastructure.
PayU’s Struggle in Kenya’s Mobile-First Payment Ecosystem
PayU Kenya embarked on its journey in the East African market in 2019, strategically partnering with local payments firm Cellulant. Its ambitious objective was to empower online merchants across the region by facilitating diverse payment options, including card payments, bank transfers, and mobile wallets. Despite establishing the necessary local licensing and operational frameworks, the firm found it incredibly difficult to penetrate and secure a substantial foothold. The core of PayU Kenya’s struggles lay in its battle against an ecosystem overwhelmingly dominated by Safaricom’s ubiquitous M-Pesa service and other deeply entrenched local financial technology providers. This dominance, coupled with inherent difficulties in scaling operations, resulted in persistently low transaction volumes and disproportionately high operating costs. Recognizing the unsustainable nature of its business model, PayU Kenya formally initiated liquidation proceedings under the Kenyan Insolvency Act in August 2025. Sonal Tejpal was subsequently appointed as the liquidator, with the appointment becoming effective on August 19, 2025. The Central Bank of Kenya’s licence revocation swiftly followed these liquidation efforts, formalizing the end of PayU Kenya’s presence in the country.
The exit of PayU Kenya serves as a stark reminder of the unique complexities and intense competition within Africa’s evolving digital payment space. Even global players with significant resources must contend with market dynamics, user preferences, and regulatory environments that can prove challenging to navigate. The incident underscores the strength of Kenya’s indigenous mobile money infrastructure and the difficulties new entrants face in disrupting an already mature and localized payment system.
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