PayU Kenya Ltd., the local subsidiary of Dutch-owned global payments company PayU, has entered liquidation six years after its high-profile entry into East Africa.
The firm has appointed Sonal tejpal as a liquidator, under Kenya’s Insolvency Act, to formally initiate the wind-up of the company’s operations.
PayU launched in Nairobi in February 2019 after receiving Central Bank of Kenya approval, pitching the hub as a springboard into neighboring Tanzania, Uganda and Rwanda. The company sought to capitalize on the region’s mobile money dominance through a partnership with pan-African payments processor Cellulant, which integrated PayU into M-PESA and other local wallet systems.
At the time, PayU executives described Kenya as a “powerful and growing market” for high-velocity merchants. But the operation failed to gain traction as competition in digital payments intensified and Cellulant grappled with its own setbacks, including layoffs, a canceled $100 million funding round in 2022, and the exit of CEO Akshay Grover in 2024.
The retreat highlights the challenges even well-capitalized global fintech firms face in Africa, where fragmented regulations, entrenched incumbents, and reliance on volatile partnerships complicate expansion. PayU has not disclosed specific reasons for its withdrawal.
Kenya remains one of Africa’s most dynamic fintech markets, with mobile money transactions accounting for more than 80% of payments. Players such as Safaricom’s M-PESA, PesaPal, iPay, and Cellulant continue to dominate the fast-evolving sector.
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