The Central Bank of Kenya (CBK) has withdrawn the authorisation of PayU Kenya Limited as a licensed Payment Service Provider (PSP) following the company’s decision to voluntarily cease its operations in the country.
In a statement, CBK said PayU, which was licensed on March 23, 2023, applied to terminate its business in Kenya after a review of its strategic direction by the company’s Board of Directors.
“The decision to cease operations in Kenya was made by the PayU Board of Directors pursuant to an informed consideration and review of its strategic plan as a business enterprise going forward,” the regulator said.
CBK noted that PayU had complied with all legal and regulatory requirements related to winding up its local operations, including the settlement of all outstanding customer funds.
“PayU has adhered to all the legal and regulatory requirements related to the cessation of business operations, including the payment of funds owed to customers,” CBK added.
Following the exit, the regulator announced that PayU will no longer provide payment services in Kenya, in line with Section 15 of the National Payment System Act, 2011, and Regulation 10 of the National Payment System Regulations, 2014.
PayU, a global financial technology company offering digital payment solutions across several markets, had operated in Kenya for just over a year before its exit.
CBK reiterated its commitment to maintaining the safety, stability, integrity, and efficiency of the country’s payment ecosystem, even as Kenya’s digital financial sector continues to attract both local and international players.
