PayU Kenya, a subsidiary of global payments firm PayU, has entered liquidation 6 years after launching in the East African fintech market.
Sonal Tejpal has been appointed liquidator under Kenya’s Insolvency Act to oversee the winding down of its operations.
The company began operations in Nairobi in February 2019 after approval by the Central Bank of Kenya. Its strategy was to use Kenya as a regional hub with plans to expand into Uganda, Rwanda, and Tanzania.
PayU Kenya aimed to integrate with dominant mobile money systems such as M‑PESA and form partnerships with established local payment processors, particularly Cellulant.
“Kenya is a powerful and growing market, ideally suited for investment and expansion for high-velocity merchants,” said Corrie Bakker, head of strategy and business development, PayU Africa, back in 2019.
“With our global, long-standing reputation, and local presence in the Kenyan market, we provide organizations with a doorway into East Africa that’s built on the foundations of long-standing relationships and local expertise.”
Despite initial promise, PayU Kenya faced several challenges. The digital payments sector in Kenya became increasingly competitive, and partnerships did not always yield the expected results.
Cellulant, its main partner, experienced setbacks, including cancelled funding rounds, staff reductions, and leadership changes, which further affected PayU’s operations.
Kenya’s fintech market remains dynamic but highly competitive. Mobile money transactions account for over 80% of payments in the country.
Established players like Safaricom through M‑PESA, alongside other platforms such as iPay and PesaPal, continue to hold strong positions with loyal user bases. As a result, new fintech entrants struggle to gain traction against these entrenched competitors.
PayU has not publicly disclosed all the reasons behind the liquidation. However, contributing factors likely include difficulties in scaling operations, stiff competition, and instability among partners.
