PayU Kenya, a subsidiary of payments and fintech company PayU, has begun liquidation proceedings, marking its exit from the Kenyan market after six years of operations.
A public notice confirms the shutdown, and also the appointment of Sonal Tejpal as the company’s liquidator, effective August 19, 2025.
The decision to shut down was filed under Kenya’s Insolvency Act and published in a local newspaper. Tejpal will now oversee the winding up of PayU Kenya’s affairs, including settling outstanding liabilities and managing claims from creditors.
What You Should Know
PayU first entered Kenya in 2019 through a partnership with local payments firm Cellulant. The collaboration allowed PayU to integrate multiple payment channels; mobile money, card payments, and bank transfers, targeting online merchants and businesses.
At the time, PayU positioned its entry as part of a broader strategy to help global merchants tap into East Africa’s growing e-commerce market.
Cellulant, with its knowledge of local consumer behavior and regulatory requirements, was expected to give PayU a competitive advantage over other international entrants.
Understanding the Challenges
Kenya’s digital payments sector is heavily dominated by mobile money providers. M-Pesa, Safaricom’s flagship mobile wallet, holds a bigger market share of digital transactions, making it difficult for new entrants to scale quickly.
Even with licenses and a local presence, observers admit PayU Kenya struggled to gain significant adoption among consumers and merchants.
The reasons behind PayU Kenya’s liquidation hasn’t been revealed and the company has not issued an official statement on the matter.
Analysts note that limited brand recognition, competition from well-established mobile wallets, and consumer loyalty to existing platforms contributed to its shutdown.
What This Means for African Startups
PayU Kenya’s shutdown carries significant lessons for African startups. According to industry experts, the exit underscores the importance of understanding local payment habits, building consumer trust, and developing scalable solutions that cater to the needs of the market.
“The departure of PayU Kenya is both a warning and an opportunity for African startups,” Samuel John, a Kenyan fintech analyst told Techparley. “It shows that even global giants can struggle if they don’t deeply understand local payment habits.”
“For startups across Africa, PayU’s exit is a reminder that success depends on adapting to the market,” Mariam Adeyemi, a Lagos-based financial technology researcher said. “Companies that can offer localized solutions and build trust with both merchants and consumers are likely to capture the market opportunities.”
Financial experts added that this shutdown creates room for other local innovators to fill gaps in digital payments and offer solutions that resonate with Kenyan consumers.
The closure of PayU Kenya marks the end of a six-year experiment by a global fintech giant in a mobile-money-dominated market. Industry leaders say the story of PayU Kenya will likely be studied as a case of both caution and inspiration for fintech innovators across the continent.
Talking Points
At Techparley, we see PayU Kenya’s shutdown as a reflection of the challenges international fintech companies face in mobile-money-dominated markets, even with significant global backing.
This development highlights the importance of deep local market understanding, consumer trust, and tailored solutions, lessons that are critical for African startups looking to scale successfully.
For startups across the continent, PayU’s exit opens opportunities to fill gaps in digital payments, provide localized services, and capture market share in a growing sector hungry for innovation.
By leaving the market, PayU creates space for agile African fintechs to innovate, redefine how digital financial services are delivered, and drive inclusion in Kenya and beyond.
As the ecosystem evolves, there is an opportunity for startups to leverage this moment, scale rapidly, and meet the increasing demand for accessible, reliable, and convenient payment solutions.
