PayU Kenya Ltd., the local subsidiary of the Dutch-owned global payments company PayU, has entered liquidation just six years after its high-profile launch in East Africa. The company has appointed Sonal Tejpal as the liquidator to formally initiate the wind-up of its operations, as per Kenya’s Insolvency Act.
PayU debuted in Nairobi in February 2019, having received approval from the Central Bank of Kenya, with plans to use the hub as a gateway into neighboring Tanzania, Uganda, and Rwanda. The company aimed to leverage the region’s mobile money dominance by partnering with pan-African payments processor Cellulant, integrating PayU into M-PESA and other local wallet systems.
At the time, PayU executives referred to Kenya as a “powerful and growing market” for high-velocity merchants. However, the company struggled to gain traction as competition in digital payments grew, and Cellulant faced its own challenges, including layoffs, a canceled $100 million funding round in 2022, and the departure of CEO Akshay Grover in 2024.
This retreat underscores the difficulties even well-capitalized global fintech firms face in Africa, where fragmented regulations, entrenched incumbents, and reliance on unstable partnerships complicate expansion. PayU has not provided specific reasons for its withdrawal.
Despite this, Kenya remains one of Africa’s most dynamic fintech markets, with mobile money transactions accounting for over 80% of payments. Leading players like Safaricom’s M-PESA, PesaPal, iPay, and Cellulant continue to dominate this rapidly evolving sector.
