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We consider the problem of population density estimation based on location data crowdsourced from mobile devices, using kernel density estimation (KDE). In a conventional, centralized setting, KDE requires mobile users to upload their location data to a server, thus raising privacy concerns. Here, we propose a Federated KDE framework for estimating the user population density, which not only keeps location data on the devices but also provides probabilistic privacy guarantees against a malicious server that tries to infer users' location. Our approach Federated random Fourier feature (RFF) KDE leverages a random feature representation of the KDE solution, in which each user's information is irreversibly projected onto a small number of spatially delocalized basis functions, making precise localization impossible while still allowing population density estimation. We evaluate our method on both synthetic and real-world datasets, and we show that it achieves a better utility (estimation performance)-vs-privacy (distance between inferred and true locations) tradeoff, compared to state-of-the-art baselines (e.g., GeoInd). We also vary the number of basis functions per user, to further improve the privacy-utility trade-off, and we provide analytical bounds on localization as a function of areal unit size and kernel bandwidth.