PayU Kenya has initiated its liquidation process, a move indicating the company’s departure from the Kenyan market after operating for six years.

The liquidation was officially recorded under Kenya’s Insolvency Act and publicly notified in a local newspaper. The new liquidator will oversee the termination of PayU’s operations and address any remaining financial obligations.

While specific reasons for PayU Kenya’s liquidation are not disclosed, it is unknown if this decision reflects a broader strategic change by PayU or its parent company, Prosus.

In accordance with Kenyan insolvency regulations, all relevant parties or creditors have been urged to submit their claims to the liquidator.

Overview of PayU’s Presence in Kenya

In 2019, PayU commenced operations in Kenya through a collaboration with Cellulant, a local payments company. The Kenyan branch received regulatory approval from the Central Bank and was designed to offer organizations and financial institutions localized support and access to volume transaction rates certified by PayU.

To enhance the locally tailored offerings, PayU partnered with Cellulant. This partnership facilitated the introduction of payment methods and supported both business-to-government and consumer payments in Africa through mobile money platforms, digital banking services, and remittance solutions.

Despite obtaining necessary licenses and setting up a local presence, PayU faced challenges in gaining market share within Kenya’s competitive digital payments landscape. The sector is currently dominated by major players like mobile money providers, making it tough for new entrants to achieve rapid growth.