By Ken Muthomi - Reporter
Kenya, 3 June 2026 - An unknown number of Kenyan accounts have been frozen and others permanently shut down by PayPal, amid concerns of money laundering and stricter oversight on cryptocurrency platforms in the country.
Reports indicate that the move is linked to Kenya being identified as one of the countries at risk of money laundering and terrorist financing by the Financial Action Task Force (FATF).
In Kenya, the platform is largely 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.
Other affected individuals in Kenya in the recent crackdown include sellers, startups, creative artists, and people raising money for causes.
According to PayPal, frozen funds shall be held for up to 180 days before releasing them to ensure that there are no chargebacks or other liabilities.
The company has also indicated that once the account is restored, future payments can also be frozen for up to 21 days.
For an account to be restored, the company is demanding proof of employment and physical addresses, such as utility bills, such as electricity, water, gas, or internet statements, which is a challenge to Kenyans who don’t have a structured address system like in the United States or Europe.
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To avert stricter restrictions, the company is requiring Kenyans who are receiving money from abroad to explain the source and purpose of the funds.
If individuals whose accounts have been temporarily frozen fail to comply with PayPal directives within the next six months, the company has indicated that the accounts risk being permanently deactivated.
According to PayPal, it will thoroughly screen these accounts to detect any history of suspicious activities and then report them to the financial intelligence unit in the respective country.
The platform treats unusually large payments at once, or a sudden increase of activities in a previously quiet account, as fraud signals.