Global payments giant PayPal has blocked a number of Kenyan accounts following concerns over money laundering.
The US-based company is now requiring Kenyan users who receive money from abroad to verify their identity, confirm their place of residence, and explain the purpose of the funds they receive.
To keep their accounts active, users must submit work contracts, bank statements, and proof of a physical home address. Those who fail to provide the required documents are locked out of moving or withdrawing their money for a minimum of six months, though they can still log in to view their balance and transaction history.
PayPal has linked the move to Kenya’s placement on the Financial Action Task Force grey list, which flags countries considered at higher risk of money laundering and terrorist financing. The listing has pushed global financial firms to enforce tighter verification measures on accounts originating from affected countries.
Among those caught in the freeze are freelancers who depend on digital work for their income. Several have reported their funds being held for extended periods, with PayPal warning that accounts remaining non-compliant for more than six months face permanent deactivation.
The restrictions are part of a wider wave of scrutiny hitting Kenya’s financial sector. Cryptocurrency platforms such as Binance and other fintech companies have also come under increased regulatory pressure over similar concerns.
PayPal has informed affected users that any remaining balances may be held for up to 180 days to cover potential chargebacks or outstanding liabilities. Even after an account is restored, future incoming payments can still be withheld for up to 21 days.
