Kenyan buy-now-pay-later (BNPL) fintech Lipa Later has been placed under administration, marking a dramatic collapse just months after securing $10 million in funding. On March 24, 2025, administrator Joy Vipinchandra Bhatt of Moore JVB Consulting took control of the company’s business and assets, officially placing it under Kenya’s Insolvency Act.
Founded in 2018, Lipa Later grew rapidly by enabling consumers to buy goods on credit and pay in installments. However, financial struggles became evident in 2024, with reports of unpaid employee salaries, legal disputes over outstanding debts, and allegations of trade secrets theft. A costly acquisition of struggling e-commerce platform Sky.Garden in late 2023 also raised concerns about its financial decision-making.
As creditors have until April 23, 2025, to file claims, the administrator will assess whether the company can be restructured, sold, or liquidated. Lipa Later’s collapse serves as a cautionary tale for Africa’s fintech sector, illustrating the risks of overexpansion, financial mismanagement, and fierce competition in emerging markets.
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