PayU Kenya, a subsidiary of global payments and fintech giant PayU, has officially entered liquidation proceedings, marking its exit from the Kenyan market after six years of operations. According to a public notice, the company has appointed Sonal Tejpal as liquidator, effective August 19, 2025, under Kenya’s Insolvency Act.
The move tasks Tejpal with winding up the company’s affairs, including settling outstanding liabilities and engaging creditors as part of the liquidation process.
PayU’s Entry and Struggles in Kenya
PayU entered the Kenyan market in 2019 through a partnership with local payments firm Cellulant. The collaboration allowed merchants to integrate mobile money, card payments, and bank transfers, aiming to provide seamless digital payment solutions for businesses and global merchants targeting East African markets.
At launch, the partnership was seen as a strategic step in PayU’s broader ambition to expand across high-growth emerging markets by acquiring or collaborating with local fintech firms. However, despite securing regulatory approval and building local operations, PayU struggled to make a significant impact in Kenya’s highly competitive digital payments landscape.
The dominance of mobile money services, led by Safaricom’s M-Pesa, made it challenging for new entrants to scale rapidly. Other established local fintech firms also posed stiff competition, limiting PayU’s ability to capture meaningful market share.
Unclear Strategic Direction
The reasons behind PayU Kenya’s liquidation have not been detailed, and the company has yet to issue an official statement. It remains uncertain whether the decision reflects local operational difficulties or a broader strategic shift by PayU’s parent company, Prosus, which holds stakes in several fintech businesses worldwide.
For now, creditors and stakeholders have been invited to submit claims to the liquidator in line with Kenya’s insolvency regulations.
Broader Implications
PayU’s exit highlights the challenges international fintech firms face when expanding into African markets with entrenched mobile money ecosystems. While Kenya is a hub for digital payments innovation, the dominance of M-Pesa continues to shape the competitive landscape, often leaving limited room for new entrants.
