PayU Kenya Enters Liquidation Six Years After East African Market Entry
Global fintech company PayU has appointed a liquidator for its Kenyan subsidiary, formally ending operations six years after launching in the East African payments market. Subsequently, Sonal Tejpal was appointed as liquidator on August 19, 2025, during a general meeting of company members under Kenya’s Insolvency Act procedures.
Strategic Partnership Challenges Undermine Market Position
PayU’s original strategy centered on a partnership with pan-African payments firm Cellulant to access Kenya’s mobile money ecosystem. Moreover, the collaboration aimed to provide integrated transaction services where over 80% of payments occur through mobile wallets, primarily M-PESA. Corrie Bakker, then PayU Africa’s Head of Strategy, stated during the 2019 launch that “Kenya is a powerful and growing market, ideally suited for investment and expansion for high velocity merchants.”
The partnership was designed to deliver hyper-localization capabilities essential for success in Kenya’s unique payment landscape. Additionally, PayU positioned its Nairobi hub as a gateway to broader East African markets including Tanzania, Uganda, and Rwanda. Therefore, the company received Central Bank of Kenya approval and established operations with regional expansion objectives.
Partner Company Instability Reflects Broader Fintech Market Pressures
Cellulant, PayU’s primary local partner, experienced significant operational challenges that may have impacted the collaboration. Furthermore, the company announced CEO Akshay Grover’s departure in 2024 following workforce reductions of approximately 20%. Earlier developments included additional layoffs and the cancellation of a planned $100 million Series D funding round in 2022.
The fintech landscape in Africa presents operational complexities that challenge even well-funded international companies. Consequently, PayU’s exit demonstrates that global entities require stable local partnerships to navigate unique payment behaviors and regulatory environments. Market competition and partnership dependencies continue shaping success rates for international fintech firms entering African markets.
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