Withdrawals from PayPal to M-Pesa are now officially possible through a partnership between PayPal and Safaricom. The new service is operated by TransferTo, a B2B mobile payment company.
To withdraw the funds, you need to do the following:
1. Have a PayPal account.
2. Go to paypal-mobilemoney.com/m-pesa and click on log in (top right corner).
3. You will be prompted to log in and thereafter agree to terms of using the service.
4. Add your M-Pesa phone number.