PayPal has frozen funds in an unknown number of Kenyan accounts and permanently banned other users after demanding proof of employment, work contracts, bank statements and physical residential addresses as part of tighter anti-money laundering checks.
Affected users, including traders, start-ups, creative artists, freelancers and informal fundraisers cannot transfer or withdraw their money for at least 180 days, while accounts that remain non-compliant for more than six months face permanent deactivation.
One notice to a blocked Kenyan user said: “We are no longer offering PayPal services for this account,” citing local laws, company policies and partner bank or card network rules.
The restrictions come as Kenya remains on the Financial Action Task Force grey list for money laundering and terrorist financing risks.
Some users say compliance has been difficult because Kenya lacks the formal residential address systems common in the US and Europe, with one user asking: “Does that mean I cannot receive money?”
PayPal said balances may be held for 180 days to cover chargebacks and other liabilities, and that it screens accounts against government watch lists.
The company processed $464 billion in payments between January and March 2026 and has more than 439 million accounts globally, but does not disclose its Kenya or Africa user numbers.
The US-based payment giant restrictions come amid a broader trend of heightened scrutiny of financial accounts in Kenya over money laundering concerns, with cryptocurrency platforms such as Binance and other fintech firms also facing increased regulatory oversight.
Once an account is restored, future payments can still be held for up to 21 days.
According to reports, one of the most challenging requirements for affected users has been providing proof of a physical address.
In Kenya, PayPal is widely used by freelancers, remote workers receiving payments from overseas clients and online shoppers seeking a secure alternative to sharing their card or bank details across multiple websites.
