The Central Bank of Kenya (CBK) has revoked PayU Kenya Limited's payment operating licence, effective October 13, 2025, following the company's entry into liquidation in August 2025. This decision marks the end of the Prosus-owned firm's efforts to penetrate Kenya's e-commerce gateway market.

• PayU Kenya struggled to gain traction in a market dominated by Safaricom's M-Pesa, despite operating since 2019.
• The revocation was signed by CBK Governor Dr. Kamau Thugge, formally ending PayU Kenya's authorization to provide payment services.
• The company appointed Sonal Tejpal as liquidator under Kenya's Insolvency Act due to operational challenges and low transaction volumes.

Global microfinance group Advans is expanding into East Africa, targeting Kenya, to support small and medium enterprises (SMEs) with data-driven and technology-enabled lending solutions. This move aims to bridge the significant financing gap faced by millions of small businesses across Africa.

• Advans plans to expand its operations into East Africa, leveraging its hybrid lending approach that combines technology with human connection.
• The expansion into East Africa is driven by the region's emergence as an innovation and trade hub, with Kenya being a key target where SMEs contribute approximately 40 percent of GDP.
• The World Trade Organization (WTO) highlights that MSMEs account for over 90 percent of global businesses but face major barriers in accessing finance and markets.

Kenyan companies are increasingly relying on internal funds for operations and expansion due to high borrowing costs and strict lending conditions, according to a recent Central Bank of Kenya (CBK) survey.

• The September 2025 CEOs Survey indicates firms are prioritizing their own resources over bank loans, despite a slight drop in lending rates since August 2024.
• The CBK noted that banks remain risk-averse, viewing Small and Medium-sized Enterprises (SMEs) as high-risk borrowers.
• 78 percent of firms have adopted technology and automated key operations in the past year, with the ICT, manufacturing, and financial sectors leading this digital transformation.
• Despite funding constraints, business leaders are optimistic about 2026, expecting growth driven by innovation and market expansion, while acknowledging challenges like high operational costs and weak demand.