For years, PayPal has been the financial lifeline for thousands of Kenyan freelancers, software developers, online traders, content creators and digital entrepreneurs earning money from clients abroad. Today, that lifeline is under strain as the global payments giant freezes funds, restricts withdrawals and permanently blocks some Kenyan accounts in an aggressive compliance crackdown that is sending shockwaves through the country’s digital economy.
A growing number of users say they have been locked out of their accounts or prevented from accessing their money after PayPal demanded additional documentation to verify their identity, source of income and residential details. Some accounts have been frozen for months while others have been permanently restricted, leaving users unable to send, receive or withdraw funds.
The company has been asking users to provide employment contracts, invoices, bank statements, government-issued identification documents and proof of physical address before releasing funds. Users who fail to satisfy the requirements risk having their money held for up to 180 days while accounts deemed non-compliant can be permanently limited.
The crackdown is largely being driven by growing international pressure on financial institutions to strengthen anti-money laundering and anti-fraud controls. Banks, payment firms and fintech companies around the world have faced hefty penalties in recent years for failing to detect suspicious transactions, pushing them to adopt increasingly strict compliance measures.
Kenya’s position on the grey list of the Financial Action Task Force, the global watchdog responsible for combating money laundering and terrorist financing, has added to the scrutiny. Since being placed under increased monitoring, transactions originating from Kenya have attracted greater attention from international financial institutions seeking to minimise regulatory risk.
For many affected users, however, the problem goes beyond compliance checks.
The crackdown has sparked growing frustration among African freelancers who believe they are being treated differently from users in Europe and North America.
One Kenyan professional who operates both a Kenyan and a European PayPal account described what he sees as a glaring double standard.
“I have PayPal accounts in Kenya and the EU, and the difference is ridiculous. The Kenyan one gets blocked, restricted and frozen so often that it is basically useless. Even after sending the documents they ask for and answering their endless questions, the account still gets treated like a crime scene.”
The user said he has never encountered similar problems with his European account despite being the same individual operating both accounts.
Similar complaints have surfaced across social media platforms where users from Kenya, Nigeria, Ghana and other African countries claim they face more frequent account reviews, payment holds and restrictions than customers elsewhere.
Some have accused PayPal of unfairly associating African transactions with money laundering risks.
“If you are an African using PayPal in 2026, you are the problem,” one frustrated user wrote sarcastically. “It has always been the most racist platform on the web.”
Another questioned why legitimate payments to African freelancers are routinely flagged.
“PayPal has this tendency of blocking any money going to Africa over money laundering fears. Can’t Africans make legit money and get paid via PayPal?”
The criticism reflects a long-running debate about the challenges African users face when accessing global payment networks. Nigeria, for example, has experienced years of complaints from online workers and entrepreneurs who say restrictions on PayPal services have limited their ability to participate in the global digital economy.
Many Kenyan freelancers say the verification requirements also fail to account for local realities. While PayPal often requests utility bills or formal proof of address, many Kenyans do not live in locations with structured addressing systems comparable to those used in Europe or North America. As a result, some users struggle to produce documents that satisfy the company’s verification standards despite operating legitimate businesses.
The timing of the crackdown is particularly significant because Kenya’s digital economy has expanded rapidly in recent years. Thousands of young professionals now rely on online work as a primary source of income, receiving payments for writing, graphic design, programming, virtual assistance, digital marketing and artificial intelligence-related services.
For many, delayed access to earnings means delayed rent payments, school fees and business operations.
PayPal maintains that such reviews are necessary to combat fraud and comply with international regulations. The company says it screens accounts against government watch lists and may request additional information to verify customer identities and business activities. Suspicious transactions can also be reported to relevant financial intelligence agencies.
Yet the growing number of complaints highlights the difficult balance between fighting financial crime and ensuring legitimate users can access their earnings without excessive hurdles.
As Kenya works to strengthen its anti-money laundering framework and improve its standing with international regulators, thousands of freelancers and online entrepreneurs remain caught in the middle. For many of them, the concern is not whether compliance checks should exist but whether African users are being subjected to a level of scrutiny that users elsewhere simply do not face.
Kericho Senator faces explosive claims of land grabbing, tax evasion, and money laundering following failed gag order attempt
NAIROBI, Kenya — A bitter legal battle between prominent blogger Cyprian Nyakundi and Kericho Senator Aaron Cheruiyot has exploded into a full-blown corruption exposé, casting a dark shadow over one of Kenya’s most powerful political figures.
The controversy reached a tipping point on May 20, 2025, when the Milimani Law Court rejected Cheruiyot’s request for a gag order against Nyakundi, allowing the blogger to unleash a torrent of explosive allegations that have sparked widespread public outrage and intensified scrutiny on the senator’s business empire.
Cheruiyot, who serves as Senate Majority Leader in Kenya’s ruling Kenya Kwanza coalition, now finds himself embroiled in accusations involving systematic land grabbing, betting tax fraud, money laundering, and questionable business dealings that allegedly span multiple industries.
Court Victory Unleashes Storm of Allegations
The Milimani Law Court’s decision to lift the gag order came after finding no legal basis to restrict Nyakundi’s exposés.
The ruling rejected Cheruiyot’s bid for interim orders, allowing fresh accusations to surface in what has become a defining moment in the senator’s political career.
With the court ruling in his favor, Nyakundi wasted no time taking to social media to air a series of damning allegations that have struck a chord in a country where corruption among the political elite remains a contentious issue.
The Betting Tax Scandal
At the heart of the controversy are allegations that Cheruiyot has profited from irregularities in betting tax collections, with Nyakundi claiming that intermediaries, rather than the Kenya Revenue Authority (KRA), are now handling billions in public funds.
Sources allege that under the previous Uhuru Kenyatta administration, betting companies were integrated directly with KRA’s tax collection system, ensuring transparent deposits into government accounts.
However, this system was reportedly dismantled under President William Ruto’s administration, with Cheruiyot allegedly playing a key role.
Nyakundi claims Cheruiyot uses Compulynx Limited, a Kenyan technology firm in which he allegedly acquired substantial shares in 2022, to divert betting taxes for personal gain.
The company’s e-Revenue platform, originally designed for county-level revenue collection, is now reportedly used to handle betting taxes, leading to a significant drop in government revenue despite a 30% increase in betting volume over the past 18 months.
Cheruiyot has dismissed these claims, stating he “doesn’t even know how to bet,” but the allegations have doubled down on earlier accusations of the senator siphoning billions from the industry.
Systematic Land Grabbing Allegations
Among the most serious accusations are claims of systematic land grabbing in Kericho County, where Cheruiyot wields considerable political influence.
Nyakundi alleges that the senator constructed a luxurious mansion in Kamelilo, Ainamoi Constituency, on land originally designated for a coffee factory by Indian investors.
The move, according to the blogger, derailed potential economic development in the area, depriving locals of jobs and investment opportunities.
Further allegations point to Cheruiyot’s involvement in large-scale land grabs in the Kipsigis region, including Angata, Tinga Farm, Sabret Tea Estate, and Homa Line.
An anonymous source, claiming to be a former employee of West Valley Sugar Company, told Nyakundi that the senator was part of a scheme to loot public lands, displacing communities for personal or political gain.
Behind the scenes, the Senator is alleged to have facilitated the entry of Arab investors into Sony Sugar, reportedly linked to the Tayyib family, a wealthy and influential business group based in the Gulf region.
These investors are believed to have secured favorable terms not through competitive bidding, but through political connections and backdoor arrangements orchestrated by Cheruiyot himself.
The Senator’s vested interest in sugar is no longer in doubt. Sources close to the matter insist that he has established himself as a silent but powerful player in the sugar trade, quietly buying into strategic companies and ensuring he controls key supply chains in the Rift Valley and Western regions.
This revelation comes at a time when Kenya’s sugar industry is struggling with collapsed infrastructure, unpaid farmers, and deep corruption, all while state officials push forward with the privatization agenda under the guise of reform.
Insiders now fear that what’s being presented as a rescue effort is in fact a well-coordinated grab by politically connected elites. “The same people who let these factories rot are now buying them at throwaway prices using proxies,” said one industry source who requested anonymity. “And Aaron Cheruiyot is right in the middle of it.”
The accusations extend to Kevoko land in Muhoroni, now reportedly in the hands of Kipchimchim Group, a conglomerate linked to the senator.
Nyakundi claims Cheruiyot bribed Members of the County Assembly (MCAs) to impeach an official who was defending the land from acquisition.
The group, which operates supermarkets and manages over 20 companies across agriculture, manufacturing, and logistics, is said to have taken over West Valley Sugar Company Ltd in a handover that has drawn criticism for threatening the livelihoods of farmers in the Nyando sugar belt.
These allegations carry particular weight given the historical context of land disputes in Kericho County, where the Kipsigis community has long accused British settlers of stealing their land—a grievance that has fueled legal battles against foreign tea growers since at least 2019.
The Adani Airport Deal Connection
Cheruiyot is also linked to the controversial leasing of Jomo Kenyatta International Airport (JKIA) to India’s Adani Group, a deal exposed by whistleblower Nelson Amenya.
In a televised interview, Amenya claimed Cheruiyot brokered the 30-year lease, traveling to India to negotiate with Adani Group bosses.
https://youtu.be/xBVBTUR67bA?si=pICvah_Gp3RjECYO
The senator’s legal team demanded a public apology and retraction, threatening defamation charges, but Amenya stood firm, refusing to apologize. The deal, later canceled by President Ruto following public outrage, has been labeled “daylight robbery” by critics.
Money Laundering and Business Empire
Perhaps the most damning accusation involves Sovereign Communication Ltd, a Safaricom dealership where Cheruiyot is allegedly a major stakeholder.
According to sources cited by Nyakundi, the company has been used as a front for money laundering operations.
The business, originally based at Utalii House in Nairobi, was reportedly relocated to Imara Daima after suspicions arose, with Cheruiyot allegedly firing the entire workforce to cover his tracks.
Nyakundi claims the luxurious mansion in Kamelilo was paid for through funds channeled via Sovereign Communication Ltd.
“Sovereign Communications operates as a Safaricom dealership, and was originally based at Utalii House in Nairobi. This business has long served as a discreet laundering vehicle for illicit funds. But when whispers of suspicion began circulating, the Senator panicked. He relocated the entire operation to Imara Daima, Nairobi County a move seemingly designed to avoid scrutiny.
In a desperate bid to cover his tracks, Cheruiyot fired the entire workforce at the Utalii House office. Not only was this aimed at silencing potential internal leaks, but it was also a cold effort to erase any paper trail connecting him to the suspicious financial activities.
One notable transaction further exposes the depth of this alleged scheme. The luxurious house recently posted online, which has drawn public attention, is part of the same web. The payment for this property, as I understand it, was channeled through Sovereign Communication Ltd. From there, the funds were transferred to I&M Bank, where it was processed in a way that masked its origin a classic tactic to hide the traceability of dirty money.” Nyakundi cited his source.
Additional claims point to Cheruiyot’s involvement in Stegro Tea Factory, an Export Processing Zone (EPZ) allegedly used to import goods and evade taxes, and his alleged secret ownership of shares in Sony and Nzoia Sugar Factories, positioning him as what Nyakundi calls a “sugar cartel kingpin.”
The senator’s wife, Linah Chesang, is also implicated, with reports claiming she has amassed significant wealth, including properties abroad, since Ruto’s administration took power in 2022.
Senator’s Defense Under Scrutiny
Senator Cheruiyot has vehemently denied all allegations, calling them “character assassination” and “foolish attempts to blackmail him into submission.”
Speaking on the Senate floor, he refuted claims of involvement in the Adani deal and challenged accusers to verify his travel to India, insisting he is a man of integrity who earned his wealth through hard work.
However, his past comments on corruption may undermine his defense. In 2021, Cheruiyot publicly stated that fighting corruption was the responsibility of the Ethics and Anti-Corruption Commission (EACC), not politicians—a stance that critics now point to as an attempt to deflect accountability.
The senator has challenged Nyakundi to bring his claims to court, but the mounting accusations, coupled with the court’s refusal to silence the blogger, have intensified public scrutiny.
Public Outrage and Political Implications
Public reaction has been swift and polarized. On social media, some users have expressed outrage, with one writing, “If even half of this is true, Cheruiyot should resign immediately.”
Others have cautioned against taking unverified claims at face value, with another user commenting, “Nyakundi needs to provide hard evidence, not just anonymous tips.”
The allegations come at a critical time for Kenya Kwanza’s administration, with critics arguing that Cheruiyot’s alleged actions reflect a broader pattern of corruption within the coalition’s ranks, raising questions about accountability and transparency in government.
Nyakundi’s legal team is reportedly preparing to petition for a lifestyle audit on Cheruiyot, which could further expose his financial dealings.
The blogger has promised to gather more evidence, including potential bank records and audit reports, to support his claims.
What’s Next?
As of May 29, 2025, the Ethics and Anti-Corruption Commission (EACC)—which Cheruiyot himself once said should lead the fight against corruption—has yet to comment on the allegations.
Meanwhile, the senator’s political future hangs in the balance as public pressure mounts for an official investigation.
The Nyakundi-Cheruiyot feud has exposed the murky intersection of politics, land, and money in Kenya, raising urgent questions about accountability and transparency.
Whether these allegations will lead to concrete legal action or remain in the realm of online speculation remains to be seen.
What is clear is that the senator’s “dirty deals,” as Nyakundi calls them, have thrust him into the center of a corruption storm that shows no signs of abating.
As social media buzzes with fresh exposés and investigations loom, Cheruiyot may soon face a reckoning that could define not only his political career but also the broader fight against corruption in Kenya’s corridors of power.
Kenyans depositing money into Savings and Credit Cooperative Societies (Saccos) may soon face tougher questions about where their funds come from, as the government moves to tighten its grip on money laundering under a proposed law.
The Anti-Money Laundering and Combating Terrorism Financing Laws (Amendment) Bill, 2025, tabled on March 4 by National Assembly Majority Leader Kimani Ichung’wa, aims to bolster Kenya’s efforts to shed its “grey list” status with the global financial watchdog, the Financial Action Task Force (FATF).
The bill expands the roster of institutions tasked with policing dirty money, bringing bodies like the Sacco Societies Regulatory Authority (Sasra), the Betting Control and Licensing Board, and even the Directorate of Mining into the fold.
For Sacco members, this could mean scrutiny over deposits exceeding a yet-to-be-set threshold, with Sasra likely requiring proof of legitimate fund sources.
“This Bill seeks to address technical compliance deficiencies identified by the Eastern and Southern Africa Anti-Money Laundering Group and FATF,” the legislation states, signaling Kenya’s urgency to meet international standards.
Kenya landed on the FATF grey list on February 23, 2024, flagged for weak safeguards against money laundering and terrorist financing.
The watchdog has since pressed for a “risk-based” approach, a shift from Kenya’s current rigid rules to ongoing monitoring of financial risks. The bill responds directly to this, aiming to plug gaps in a financial system vulnerable to illicit flows.
Beyond Saccos, the legislation casts a wide net. Cash deals in precious metals and stones over $15,000 (Sh1.9 million) will fall under the Directorate of Mining’s watch, a surprising inclusion highlighting the breadth of the crackdown.
Other regulators, like the Institute of Certified Public Accountants and the Estate Agents Registration Board, will also step up oversight in their sectors.
This isn’t the government’s only move. New rules effective June 18, 2025, under the Income Tax (Charitable Organisations and Donations Exemption) Rules of 2024, will bar charities from hoarding more than 15% of their funds for three years without spending on charitable causes—another bid to curb financial misuse.
Meanwhile, a 2024 deal with the Law Society of Kenya turns lawyers into watchdogs, reporting suspicious transactions, and March 2024 regulations threaten banks and officials with Sh20 million fines or 20-year jail terms for mishandling terror-linked funds.
The stakes are high. Kenya’s grey-listing has rattled investor confidence and complicated global financial ties. “Kenya will work to improve risk-based supervision of financial institutions and adopt frameworks for virtual assets,” the FATF noted in its 2024 report, a roadmap the bill seeks to follow.
For Sacco members, long a backbone of grassroots savings and loans, the changes could bring added paperwork and delays.
Critics worry it might dent trust in these community institutions, though proponents argue it’s a necessary price to clean up the economy.
As the bill heads to debate, Kenya’s fight against dirty money is entering a decisive phase—one that could reshape how millions save and spend.
Behind the Glitz and Glamour Lies a Darker Reality
In the heart of Nairobi, the city’s nightlife is booming. Upscale nightclubs and exclusive bars are opening at an unprecedented rate, transforming the capital into an entertainment hub. Social media is flooded with flashy videos of grand openings, champagne showers, and socialites indulging in lavish bottle service. But beneath the extravagant façade, a more sinister operation is at play—money laundering.
How Nightclubs Become Laundering Machines
Money launderers face one major challenge: banks closely monitor large cash deposits, flagging any suspicious transactions. This scrutiny has forced them to find alternative methods to clean their illicit wealth, and high-end nightclubs have emerged as the perfect front.
According to sources within the industry, some of Nairobi’s most exclusive clubs are backed by individuals seeking to launder millions of shillings without drawing attention.
According to an insider with deep knowledge reveals the intricate scheme behind these operations.
Club owners or supervisors get approached by individuals needing to launder large sums—nothing less than Sh5 million. And since they can’t bank this cash in banks without fraud detection, they pass it through the clubs to avoid scrutiny and emerge clean.
This illicit financial networks, has helped several high-profile clubs in Nairobi, ensuring a steady cash flow—both legitimate and otherwise.
Bottle Service: The Perfect Cover
One of the most effective ways to clean money is through extravagant bottle service. High-end clubs list premium liquor at eye-watering prices—such as Glenfiddich 40-year-old at Sh289,000 or Macallan No.6 at Sh590,000—allowing customers to “spend” huge sums without raising suspicion.
A nightclub insider, speaking anonymously, detailed how the scheme works:
“VIP patrons order two bottles, but for the cameras and club records, we bring out six or even eight bottles. Sparklers, music, and photographers create the illusion of a massive splurge. The extra bottles are quietly returned to the counter, while the bill remains inflated,” he said.
This exaggerated spending helps clubs justify large sums of cash in their daily earnings.
The Well-Oiled Machine
The laundering process begins even before the party starts. Illicit cash is discreetly delivered to the club’s back office, where it is integrated with legitimate sales.
A waiter at a high-end club along Ngong Road, shared how it works:
“We receive money upfront. At the end of the night, we generate two sets of receipts—one for the actual purchases and another inflated bill to match the laundered money. When auditors review our records, everything looks clean,” he said.
Once the club’s earnings are collected, the cash is transported to banks. Mixed with legitimate revenue, it blends seamlessly into the system. From there, it is funneled back into criminal networks as “legal” transactions, often disguised as payments for services like sound equipment rental, event consultancy, or catering.
A Hard-to-Track Operation
Forensic experts warn that tracking these funds is nearly impossible.
A private investigator with knowledge from multiple cases says, “by the time authorities attempt to trace the money, it has already changed hands multiple times. It moves through legitimate accounts as payments for services, making it extremely difficult to flag as illicit.”
With clubs operating multiple VIP tables and branches across Nairobi, this laundering cycle runs seamlessly.
The Future of Nairobi’s Nightlife
As long as money launderers need a way to clean their cash, high-end clubs will continue to thrive—not just as entertainment spots but as financial laundromats. Authorities face an uphill battle in cracking down on these operations, especially as nightlife remains a key part of Nairobi’s economy.
For now, the city’s party scene isn’t just about expensive liquor and wild nights—it’s about cleaning up in more ways than one.
Disclaimer: This article does not implicate any specific club or individual in criminal activity without evidence.
Kenya’s banking industry has in recent years been in the crosshairs of national, regional and international watchdogs, given the country’s role as a financial hub in eastern Africa. In 2023, Kenya enacted laws to curb money laundering and combat terrorism financing.
While the laws have led to tougher sanctions on some banks, the risk of money laundering remains, and the country was recently greylisted by the Financial Action Task Force. A grey list contains countries that are actively working with the Financial Action Task Force to address loopholes in countering money laundering, terrorist financing, and proliferation financing.
Constance Gikonyo, a corporate law academic who has researched the place of banks and piracy in money laundering, answers questions about existing loopholes.
How is money laundered through banks?
Money gained illegally can be laundered by placing it into the financial system through banks. Those who launder money typically engage in “smurfing” and “structuring”.
This is the breaking down of large sums of money into smaller transactions to evade the reporting threshold and avoid suspicion. In Kenya, the reporting threshold has been increased from US$10,000 to US$15,000. Banks have to report certain transactions to the Financial Reporting Centre.
Once in the financial system, the money is moved around in a process known as layering. Funds are moved through different banks using different transactions and bank accounts to disguise the illicit origin of the money.
Once the money is disguised, the banks will again be involved in the process of integration. This is where the money is deposited into the bank account of the person or entity that finally uses it.
That way, the criminal proceeds are integrated with legitimate funds. These funds make their way into the economy through investments such as purchasing a property.
Why are banks the prime targets of money launderers?
Banks offer a gateway into the financial system. Once the funds are in the financial system, it is easier to disguise their illegal origin. Also, technological advancements and the integration of the global financial system make it easier and faster to move money around and across borders.
Some banks have weak know-your-customer procedures—mandatory checks meant to identify and verify customers when opening an account and periodically over time. These can be exploited. Banks don’t always continue monitoring customers effectively.
There are also cases of complicit individuals within banks using the system to aid money laundering.
Evaluate their customers thoroughly. The due diligence should be based on an assessment of the customer as a risk. The riskier a customer appears to be, the more comprehensive the evaluation should be.
Keep records of transactions and customer identification information for at least seven years after the end of the engagement.
Report suspicious transactions and cash transactions of US$15,000 or more to the Financial Reporting Centre, an agency created under the same law to fight money laundering.
Hire money laundering compliance officers and ensure continuous staff training on anti-money laundering and combating the financing of terrorism. All banks are required to develop internal policies, procedures and controls to combat these crimes.
What challenges do banks face in fighting money laundering?
Technological advancements mean that money launderers can be a step ahead of the measures the banks have put in place.
The criminals can find ways to avoid detection by the systems in banks. The rise of digital and cyber-enabled financial crimes increases the challenge for banks.
Compliance requirements mean banks have to invest in personnel, technology and training. This increases their operating costs. Banks also invest in research to help identify weaknesses in their systems.
Banks have to balance regulatory requirements with customer service and customer privacy. Customer background checks can be intrusive but a bank faces sanctions and reputational risks if it does not do them.
Corrupt individuals working in banks can assist in money laundering. Banks should vet staff when they hire them, especially those in sensitive roles, and continuously monitor them.
The global nature of the financial system means banks must deal with financial institutions and different regulatory standards in different jurisdictions. Compliance with all these can be a challenge. Criminals will identify the loopholes and gaps created by these differences and seek to exploit them.
What are the main markers of a well-governed financial system?
A well-governed financial system has effective policies and practices for combating money laundering and the financing of terrorism. The relevant authorities ensure that the laws are enforced.
There should also be international cooperation and engagement between the private sector and relevant regulatory and enforcement agencies.
Effective supervision by the central bank is a feature of a well-governed system. Central banks ensure the stability, soundness and integrity of the banking system.
They should establish a proper regulatory framework for banks, tighten their licensing and approval processes, ensure continuous monitoring and examination of sector players, and provide early warning systems. Weak supervision would mean that consumers were not adequately protected.
This leads to a loss of public trust and international confidence. Financial instability could be the result.
The public and private sectors should collaborate actively. In Kenya, the Financial Reporting Centre and the Law Society of Kenya are working together towards implementing the anti-money laundering provision which requires lawyers to report entities that make suspicious transactions.
Regulatory bodies and law enforcement agencies need resources to do their work. Preventing, identifying and dealing with financial crimes requires funds to innovate, and develop staff capacity and infrastructure.
Transparency and accountability in financial institutions encourage compliance with regulatory standards. Banks with a culture of innovation and investment in new technologies are best placed to achieve transparency and accountability.
