PayU Kenya Limited Ceases Operations Following Licence Revocation
The Kenyan fintech landscape recently witnessed a significant development as PayU Kenya Limited shut down its operations after the Central Bank of Kenya (CBK) revoked its license. This decision effectively ended PayU Kenya Limited’s ability to conduct business within the country, marking a notable shift in the evolving online payment ecosystem.
The Rise and Fall of PayU Kenya Limited
PayU Kenya Limited entered the East African market in 2019, collaborating with Cellulant, a local Kenyan company. The primary objective was to facilitate seamless online transactions, offering customers various payment options, including credit and debit cards, direct bank transfers, and mobile wallets. This was intended to streamline the payment process across the region. Despite obtaining the necessary licenses and establishing a local presence, PayU Kenya Limited faced stiff competition. Dominant players like M-Pesa, the popular mobile-money service, and other established local companies already held a firm grip on the market, making it challenging for PayU Kenya Limited to gain a substantial foothold. Liquidation proceedings for PayU Kenya Limited commenced in August 2025, conducted under Kenyan law, with Sonal Tejpal appointed as liquidator on August 19, 2025. This was quickly followed by the CBK’s revocation of the company’s license, officially signaling the cessation of PayU Kenya Limited’s operations.
The closure of PayU Kenya Limited underscores the competitive nature of the African fintech sector and the difficulties that new entrants can face against established platforms. The revocation highlights the importance of regulatory compliance and the challenges associated with navigating a rapidly changing market.
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