Lipa Later Placed Under Administration Amid Financial Struggles

What does it mean to be under administration?

According to Section 563 (2) (b) of the Insolvency Act 2015, the administrator has full control over Lipa Later’s business, assets and overall management. The directors cannot make any financial or operational decisions without the administrator’s approval.

“All operational matters and business transactions regarding the company shall be directed to the administrator or their authorized representatives,” reads the notice.

Creditors have until April 23, 2025 to submit their claims to the administrator.

Lipa Later’s financial struggles and funding rounds

Founded in 2018, Lipa Later pioneered hire-purchase financing and allowed consumers to buy goods and pay in installments. The company raised approximately KES 1.36 billion in debt and equity financing to expand across African markets.

In 2023, Lipa Later raised KES 500 million in private debt financing, a vote of confidence in Kenya’s BNPL space. The same year, it raised KES 9 million in equity crowdfunding on Republic, attracting 84 investors. Lipa Later also acquired Sky.Garden, a Kenyan e-commerce platform, for KES 250 million.

Despite all these funding rounds, financial trouble started when Africa Foresight Group filed Insolvency Notice E022 of 2023 demanding KES 1.75 million (USD 13,516). The case was filed in the High Court at Nairobi (Milimani Commercial Courts) and could lead to liquidation of Lipa Later.

What next for Lipa Later?

With the company under administration, stakeholders will be watching the administrator’s moves to stabilize operations, manage debts and explore recovery options. The fate of Lipa Later’s employees, customers and investors is uncertain as Kenya’s BNPL space gets more competitive with Safaricom, Craft Silicon and Mastercard’s BNPL initiatives.