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PayU Kenya Limited has officially ended its operations after the Central Bank of Kenya (CBK) revoked its licence, marking the formal closure of the company’s payment services in the country.
The revocation, effective October 13, 2025, follows PayU Kenya’s move into liquidation under Kenyan law. In a public notice, the CBK confirmed:
“It is notified for the information of the general public that the Central Bank of Kenya has revoked the authorisation granted to PayU Kenya Limited with effect from 13th October, 2025.”
Founded in 2019, PayU Kenya entered the market through a partnership with local fintech Cellulant, with the goal of simplifying digital payments by supporting card transactions, bank transfers, and mobile wallets across East Africa. Despite obtaining the necessary regulatory approvals, the firm struggled to gain traction in a market dominated by M-Pesa and other established local payment platforms.
In August 2025, the company began its liquidation process, with Sonal Tejpal appointed as liquidator on August 19, 2025. The CBK’s licence withdrawal was a procedural consequence of this development rather than a punitive action.
Industry analysts note that PayU Kenya’s challenges reflect the realities of Kenya’s mature and highly competitive digital payments landscape.
“Every SIM card in the country comes with M-Pesa by default, so new payment systems like PayU struggle to scale,” one expert observed.
While PayU focused on serving online merchants, that segment remains comparatively small within Kenya’s overall payments ecosystem. High operating costs, limited customer acquisition, and a demanding regulatory environment further compounded its difficulties.
Despite this exit, PayU, which is headquartered in the Netherlands, continues to operate successfully in other African markets, including Nigeria and South Africa. The closure of its Kenyan subsidiary underscores both the opportunities and competitive barriers facing international fintechs in Africa’s most dynamic payments market.
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