Company Lipa Later Enters Administration Due to Unsuccessful Attempts in Securing New Financial Resources
Lipa Later Limited, a trailblazing Kenyan digital consumer credit provider that popularized the Buy-Now-Pay-Later (BNPL) model, is currently under administration. This development, announced on March 24, 2025, has raised questions about the sustainability of BNPL models in Kenya's credit market.
Joy Vipinchandra Bhatt of Moore JVB Consulting has been appointed to oversee the operations of Lipa Later Limited. Bhatt took control of the company's business on March 24, 2025, and now has authority over its assets and management. The appointment follows Kenya's Insolvency Act, signalling financial distress for the BNPL firm.
Retailers are paid upfront by Lipa Later, and installment payments are collected from buyers. However, the company's directors no longer have the authority to transact or manage assets without the administrator's approval. The deadline for creditors to submit claims against Lipa Later Limited is April 23, 2025.
Lipa Later Limited, founded in 2018, facilitates hire purchase transactions. It leveraged Kenya’s widespread mobile-money adoption and rising e-commerce to expand rapidly, partnering with key electronics retailers domestically and regionally, including in Uganda.
The company operates in a credit market with growing consumer demand for installment-based payments, especially among informal workers and youth. However, the landscape faces challenges due to steep interest rates, hidden fees charged by some pay-later providers, and patchy regulatory oversight, which risks consumers falling into debt traps if not properly educated or protected.
The administration of Lipa Later is ensuring a structured transition for stakeholders, according to Moore JVB. The future implications for Lipa Later and similar providers hinge on regulatory improvements and enhanced consumer education. Experts stress the need for clearer consumer protections, responsible lending policies, and financial literacy programs to ensure that these credit models contribute positively to financial inclusion rather than over-indebtedness.
If implemented well, Lipa Later could evolve from a convenience service into a platform for long-term financial empowerment, providing dignity and manageable credit access for underserved populations. The administration process presents an opportunity for the company to restructure, learn from its challenges, and emerge stronger, contributing positively to Kenya's digital credit market.
- Lipa Later's Regional Expansion
- Challenges and Opportunities in Kenya's BNPL Market
- Financial Inclusion through BNPL: A Pathway for Empowerment
- Joy Vipinchandra Bhatt's appointment as the administrator of Lipa Later Limited indicates a significant shift in the company's operations, particularly in its business dealings with retailers and finance, as payments are collected from buyers and transactions require the administrator's approval, according to the Kenya Insolvency Act.
- As the future of Lipa Later and similar providers in Kenya's BNPL market hinges on regulatory improvements and enhanced consumer education, the company's administration process provides an opportunity to restructure, learn from past challenges, and evolve into a platform for long-term financial empowerment, contributing positively to the financial industry.
