A deepening crisis in Kenya’s fintech sector is unfolding as scandal-ridden payment processor JamboPay now sits at the centre of a multi-billion-shilling meltdown that has frozen the savings of thousands of Payless Africa customers, raising fears of one of the biggest digital finance scandals in recent years.
Payless Africa, the once-buzzy savings and payments app that aggressively marketed itself using young influencers and promises of seamless transactions, is now facing a revolt from its 680,000 users after withdrawals were blocked for nearly three months even as the app continues displaying balances and accepting deposits.
Evidence emerging from documents, interviews and technical analysis paints a disturbing picture of systemic failure and possible misconduct inside JamboPay, the same company previously linked to explosive bribery claims and controversial revenue collection contracts at Nairobi County.
The chaos began in September when JamboPay abruptly stopped processing withdrawals for Payless customers. What initially appeared to be a routine delay quickly turned into a full-scale freeze as JamboPay’s systems went offline, its SSL certificate expired and its main domain strangely redirected to an ePay portal associated with Kajiado County Government, according to technical findings captured in the Payless Africa investigation report.
Customers attempting to access their funds were met with error messages, dead phone lines and a ghost-town façade across JamboPay’s digital platforms. Its last public communication was months ago and its social media pages have since gone silent or been erased altogether.
Meanwhile, Payless Africa insists all funds are “100 percent safe,” claiming JamboPay is withholding escrowed cash during a transition to a new payment processor. The company has offered repeated assurances of imminent restoration, but none have materialised. As complaints pile up, its customer support lines have turned into loops of automated responses or simply remain unanswered.
The consequences have been devastating for small businesses that relied on Payless for daily transactions. A Nairobi boutique owner told investigators she has over Sh680,000 trapped since September, money meant for stock and wages. A Westlands electronics entrepreneur is owed Sh1.2 million that has crippled his business for months. Other users shared screenshots showing school fee savings stuck for weeks while the platform continues taking deposits without explanation.
Cybersecurity analysts now warn that some of JamboPay’s system changes point to possible misrouting of funds. Industry sources have hinted at a troubling discovery of bank transfers meant for JamboPay allegedly ending up in private accounts linked to former directors, though those claims remain unverified. Consumer groups say this is enough reason for urgent intervention from the Central Bank.
The JamboPay name is no stranger to controversy. Court testimony earlier this year revealed the company’s founder Danson Muchemi allegedly offered former Nairobi Governor Mike Sonko Sh4–5 million daily to retain a lucrative City Hall revenue collection tender, with audio recordings said to capture the bribery attempt. The same testimony suggested former Governor Evans Kidero may have made Sh7 billion from a similar arrangement under JamboPay’s system.
These explosive court revelations have now resurfaced in public conversation as Kenyans question whether the structural weaknesses and opaque practices witnessed in the Nairobi County revenue saga are the same forces behind the current Payless collapse.
With more than Sh2.1 billion in customer funds frozen, growing suspicion and silence from regulators, frustrations are morphing into fury. Merchant groups have begun organising protests while hashtags demanding accountability from both companies are dominating social media.
Despite the scale of the crisis, the Central Bank of Kenya has not issued a public statement, fuelling anxiety, with consumer advocates warning that every passing day increases the risk that customers may never recover their money.
For now, as JamboPay remains unreachable and Payless Africa drifts deeper into uncertainty, thousands of Kenyans stare helplessly at digital balances that may never translate into real cash. The scandal has exposed how fragile some of the country’s fast-growing fintech ventures are and how quickly hype can collapse into heartbreak when regulators, processors and digital platforms fail to protect the very people they claim to serve.
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