PayU Kenya has officially shut down operations and entered liquidation, marking its exit from Kenya about six years after launching in partnership with local fintech company Cellulant. The winding up took effect under Kenya’s Insolvency Act from August 19, 2025, with Sonal Tejpal named as liquidator.
PayU first began operations in Kenya in 2019, offering merchants multiple payment options including mobile money, card payments, and bank transfers—leveraging Cellulant’s local network and expertise. Despite securing licenses and setting up infrastructure, the company struggled to scale meaningfully in a market dominated by strong incumbents.
The public liquidation notice in the Kenya Gazette invites creditors to submit claims as PayU’s remaining liabilities are assessed and assets are wound down. So far, PayU has not released a detailed public explanation for the closure, and it remains unclear if this move is part of broader restructuring by its parent company.
For Kenyan merchants and users, the shutdown raises concerns around transaction disruptions, unsettled accounts receivable, and loss of payment service diversity. Observers believe the exit underscores how competitive and saturated the payments sector is in East Africa, where mobile money operators have strong grip and margins can be thin for new entrants.
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