PayU Kenya Exits Market as CBK Revokes Operating Licence
The landscape of Kenya’s digital payments sector has witnessed a significant development with the official shutdown of PayU Kenya. This closure follows a decisive move by the Central Bank of Kenya (CBK) to revoke the company’s operating licence, a decision that came mere days after the Prosus-owned payment firm initiated liquidation proceedings. This marks the definitive end of PayU Kenya’s relatively brief and challenging venture within Kenya’s fiercely competitive eCommerce payment ecosystem.
# The Path to Shutdown: CBK’s Revocation and Market Dynamics
The revocation order, formally issued and signed by CBK Governor Dr. Kamau Thugge, stipulating an effective date of October 13, 2025, has unequivocally terminated PayU Kenya’s legal authority to conduct its operations within the country. As a subsidiary of Netherlands-based PayU, the company first entered the Kenyan market in 2019. Its launch was facilitated through a strategic partnership with African payments giant Cellulant, with the core promise of simplifying online transactions for merchants. PayU Kenya aimed to achieve this by offering an integrated platform that consolidated various payment methods, including card payments, direct bank transfers, and ubiquitous mobile money wallets. Despite its initial ambitious goals and sophisticated offerings designed to streamline digital commerce, the challenging and dynamic nature of Kenya’s burgeoning payments sector proved to be a formidable hurdle for the firm.
This regulatory action by the Central Bank underscores the stringent oversight applied to financial technology companies operating in the region. The exit of PayU Kenya, a player backed by a global conglomerate like Prosus, highlights the intense competition and the high standards of compliance and operational viability required to thrive in the vibrant yet demanding Kenyan fintech space. For merchants and consumers, this event serves as a reminder of the evolving regulatory environment and the constant shifts in the availability of payment processing solutions.
Keywords
Related Keywords: PayU Kenya shutdown, CBK revokes PayU licence, PayU Kenya closure, Kenya payment gateway news, Central Bank of Kenya PayU, PayU Kenya ceases operations, Fintech Kenya regulations, PayU Africa Kenya exit, Payment processing Kenya, PayU Kenya alternatives
