After launching in 2019, PayU Kenya has formally left the Kenyan market, designating Sonal Tejpal as liquidator on August 19, 2025.
Amidst difficulties scaling in a competitive payments ecosystem dominated by established companies, the company ceased operations in Kenya by entering liquidation under the country’s Insolvency Act.
PayU Kenya struggles in mobile money-dominated market
With great anticipation, PayU joined forces with Cellulant to launch in Kenya in 2019 to give international retailers easy access to East Africa’s expanding digital payments industry.
PayU’s worldwide reputation supported the relationship, Cellulant’s local knowledge, and integrated bank transfer, card, and mobile money alternatives for online merchants.
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PayU positioned itself as a gateway for foreign companies looking to enter the region at launch.
Despite these efforts, PayU did not gain significant traction in Kenyan digital payments. Kenya’s market remains controlled mainly by dominant mobile money providers like M-Pesa, with limited room for new entrants to scale.
The liquidator’s appointment signals the winding down of operations and settling liabilities under local insolvency laws. The company has yet to explain the reasons behind the exit publicly or whether this is part of a broader realignment by its parent company, Prosus.
Liquidation process and stakeholder notice
With Sonal Tejpal officially appointed liquidator, PayU Kenya’s closure now follows formal insolvency procedures. Tejpal is tasked with managing the winding-up process and handling claims from creditors or interested parties.
PayU’s departure leaves a gap in Kenya’s fintech space where international payment providers face fierce competition from entrenched local platforms. Stakeholders and creditors have been invited to file claims as the company formally ceases operations.
PayU’s Kenya experience reflects the challenges global fintech companies sometimes face when entering markets with established, culturally embedded mobile money ecosystems.
The company’s exit after six years suggests that even well-backed firms with local partnerships struggle to overcome market dominance by entrenched players in East Africa’s digital payments arena.
While highlighting the difficulties of scaling outside major mobile money networks, this move may change the competitive dynamics in Kenya’s payments industry and present opportunities for other entrepreneurs. Industry watchers and market participants will eagerly monitor the final liquidation results.