PayU Kenya Limited has been stripped of its operating licence by the Central Bank of Kenya, days after the company entered liquidation, drawing a close to the Prosus-owned payment firm’s attempt to break into Kenya’s e-commerce gateway market.
- •The revocation, effective October 13, 2025, was signed by CBK Governor Dr. Kamau Thugge formally ending the firm’s authorization to provide payment services in Kenya.
- •PayU Kenya, a subsidiary of Netherlands-based PayU, began operations in 2019 through a partnership with African payments company Cellulant.
- •It offered digital payment gateway services that integrated card payments, bank transfers, and mobile money wallets for online merchants. The company positioned itself as a bridge between global e-commerce firms and East Africa’s fragmented payment systems.
- •PayU remains active in other African markets, including Nigeria and South Africa, where it continues to operate under local regulatory frameworks.
Operational Struggles and Liquidation
PayU’s entry was part of a broader African expansion by its parent company Prosus, which sought to leverage Kenya’s mature mobile money infrastructure to capture a share of regional digital payments.
Despite its global experience and regulatory approval, PayU struggled to gain traction in a market long dominated by Safaricom’s M-Pesa and other mobile-based systems.
In August 2025, PayU Kenya entered liquidation proceedings, appointing Sonal Tejpal as liquidator under Kenya’s Insolvency Act.
The move came amid reports of operational challenges and low transaction volumes. Its revocation by the CBK followed soon after, effectively terminating any remaining regulatory standing.
Market Impact and Industry Implications
PayU’s exit highlights the difficulties foreign fintech firms face when competing against entrenched mobile money ecosystems that handle more than 80 percent of Kenya’s payment flows.
The revocation also trims Kenya’s list of licensed payment service providers, which includes Cellulant, Pesapal, and Flutterwave, among others.
It underscores the Central Bank’s ongoing oversight of the fast-evolving payments sector, which it has tightened since the introduction of the National Payment System Regulations in 2014.
