PayU Shuts Down After Central Bank of Kenya Revokes Licence
2 min read
PayU Kenya has officially closed shop after the Central Bank of Kenya (CBK) revoked its operating licence, marking the end of the Prosus-owned payment firm’s short-lived presence in Kenya’s digital payment market.
The CBK, in a notice signed by Governor Dr. Kamau Thugge, announced that the revocation took effect on October 13, 2025. The move comes shortly after PayU Kenya entered liquidation, citing low transaction volumes and high operating costs. The company, part of Netherlands-based PayU, launched in Kenya in 2019 in partnership with local fintech firm Cellulant, promising to simplify online payments for merchants by integrating card, bank, and mobile money transactions on a single platform.
However, Kenya’s payments ecosystem proved challenging to penetrate. With Safaricom’s M-PESA controlling more than 90% of mobile transactions, PayU faced an uphill battle convincing merchants and consumers to switch. Despite its global reach and resources, the company failed to gain meaningful traction in a market deeply tied to mobile money culture.
By August 2025, PayU Kenya began winding down operations and formally notified the CBK of its intention to cease business and surrender its licence. The CBK’s revocation is part of a wider regulatory tightening under the National Payment System Regulations, which have increased compliance requirements for payment service providers—particularly foreign firms unfamiliar with Kenya’s legal and operational landscape.
PayU’s exit reduces the number of active payment service providers in Kenya, leaving established players like Pesapal, Cellulant, Flutterwave, and Airtel Money to dominate the space. It also underscores the challenges facing international fintechs entering African markets, where regulatory complexities and consumer preferences often demand deep local adaptation.
For Prosus and PayU, this shutdown may mark a strategic retreat from one of East Africa’s most dynamic fintech ecosystems, while highlighting a broader lesson—success in Africa’s payment landscape requires more than global experience; it requires local trust, partnerships, and cultural understanding.
About The Author
