Unpacking Africa’s License Transfer Barriers: Lessons from Zazuu, Bonto and PayU Kenya Exits

By Emmanuel  Okoegwale, MobileMoneyAfrica

From the promising Zazuu, a UK-based remittance marketplace for African corridors which shut down in late-2023 after failing to raise a growth round despite earlier seed funding, to  Bonto which surrendered their license to the Central Bank of Kenya on August 15th, 2025 and later  PAYU, discontinuing operations also in Kenya from August 19th, 2025 after struggling to gain traction in the country, further adding to the continent’s unfulfilled Fintech potentials. 

For Fintechs, a major market entry cost is the licensing and authorization  cost in Africa though that is slightly easier in some Countries as more unlicensed fintechs now have a ‘work-around’ in some license categories.

Despite the significant  licensing outlay, many notable FinTechs have taken the approach of surrendering their license to the regulator rather than exploring  the opportunity to transfer it to another party via sale. Here are few reasons why this may not be feasible or viable option alternative for some operators:

1. Non-transferable licenses and authorizations

Some licenses are explicitly barred from being transferred to another party. For example, Kenya’s money remittance regulations state that licenses “shall not be transferred, assigned, or encumbered in any way.” This makes a direct sale to another party impossible, unless the buyer acquires the entire entity which may be unsuitable for global fintechs with multiple operations in different countries. 

2. Regulatory approval, capital hurdles and delays

Where license transfers are technically possible, the process is rarely straightforward. Regulators may take months or even years to review and approve transfers and in some instances, approval can be withheld by the regulator.  It can also be costly for a fintech exiting the market to keep operations running during the transition time which is not well defined.

3. Court-ordered liquidation

Courts often oversee liquidation proceedings which can restrict  the transfer of assets, liabilities and licenses, leaving little room for a simple handover to another player. Bizao, was ordered into compulsory liquidation by a French commercial court in Q2, 2025. The ruling halted operations and put their  assets into liquidation.

4. Reputation risk

At times, a licensed Fintech may hold back on transferring their license to other parties  if the benefits accruable from such sales will not outweigh potential future  reputational baggage linkage to their brand or parent company  by new acquirers. This reduces their attractiveness to potential buyers who prefer to start on a clean slate.

5. Strategic parent company decisions

Global parent companies sometimes shut down African subsidiaries rather than attempt a sale. PayU Kenya’s exit in 2025 reflected this trend, with its parent accepting closure after limited traction.

6. Acquirer’s Hesitancy

Potential buyers are always hesitant to commit to timely acquisition of exiting  license holders due to the risk of taking on, hidden liabilities such as deposit remediation costs, compliance failures, eroded capital etc  which can outweigh the license's value.