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Kenya Buys (BNPL) Fintech Lipa has since been under control of its board of directors, raising $12 million in 2022 from the Administrator’s instrumental decision-making authority to the Administrator’s Lipa, earning $3.4 million in September 2023, and being placed under control to protect $3.4 million in debt.
Kenya was later placed under control as of March 24, 2025, after several months of economic tensions. According to the notice in the official gazette, Joy Vipinchandra Bhatt of Moore JVB Consulting LLP has been appointed administrator. This move removes our directors from management of operational and hand decision-making authority to managers.
Creditors must file a claim until April 23rd. Employees and suppliers have been reporting non-payment since late 2024. In one case, the London-based African foresight group sued LIPA for an unpaid consultant fee of $13,516. The Kenya High Court cited an internal email awarded against LIPA in late December 2024, citing the debt.
Lipa subsequently raised $12 million in equity in 2022 and secured $3.4 million in debt in September 2023. However, in 2024, they were unable to raise additional capital. Sky.Garden, an e-commerce platform, won KES 250 million ($1.9 million) in December 2023.
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Lipa’s later downfall marks the attention chapter of the African fintech boom. The company’s collapse, once considered an upswing in BNPL innovators, reflects pressure on startups that rely heavily on external capital. Despite raising more than $15 million since 2019, Lipa was unable to secure funds in 2024 amid investor sentiment. The acquisition of Sky.Garden could have later exacerbated Lipa’s liquidity challenges under its own pain. Meanwhile, employee pay delays and supplier debt erode stakeholders’ trust. The appointment of managers shows a lasting effort to save value, through restructuring or sales. The post-LIPA model of consumer loans with late repayments required sustained cash flow and continued funding. Without it, debt would have been installed. Its fate could depend on whether the buyer is seeing possibilities on the infrastructure or customer base. This case highlights the growing scrutiny of fintech sustainability across Africa. This is an increase in interest rates, inflation and risk aversion that emphasizes the startup’s financial environment.
