I had the same issue, and I contacted paypal about it. I got this response: "I can see that for this occasion, our security model has prevented this attempt to withdraw your funds since it was found that it would not be 100% safe for you and to protect you from any negative experience in PayPal and online fraud. You may try it on a later time (after 48 hours) for our system to have time to refresh your account and delete all your failed attempts. Please refrain from doing any actions and transactions during this time. You may also uninstall and install your PayPal app (if you are using app), clear your cache/cookies, delete browsing history, and open a new browser while waiting for this 48 hours to pass. If this will still not work, I suggest withdrawing your funds to a US Bank or Local Bank instead." After waiting for 48 hours, the issue was no more and I was able to do the widthrawal to my mpesa.
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