PayU Kenya Enters Liquidation After Struggling in M-Pesa-Dominated Market

PayU Kenya, the local operation of global fintech giant PayU, has entered liquidation after years of struggling to win over customers in one of Africa’s most competitive financial technology markets.

Despite backing from Prosus and a footprint in more than 50 global markets, PayU Kenya failed to overcome the dominance of Safaricom’s M-Pesa, which controls over 95% of Kenya’s mobile money transactions. Other competitors like Airtel Money, Flutterwave, and Cellulant also added pressure, leaving little room for new entrants.

The liquidation marks a broader trend of international fintechs reassessing their African strategies. Earlier exits from firms like Uber Eats in Kenya and Jumia Pay in select markets highlight the difficulties of scaling in ecosystems where entrenched local players dominate consumer trust.

PayU’s retreat is both a cautionary tale and a reminder that Africa’s fintech opportunity, though vast, demands innovation deeply rooted in local realities.

West Arekahme