The United States has praised Kenyan law enforcement agencies and prosecutors for their role in dismantling an international fraud network accused of stealing millions of dollars from American student financial aid programmes.
In a statement released by the US Embassy in Nairobi on Friday, October 30, Washington said longstanding security cooperation between the two countries had been instrumental in investigating the scheme, which allegedly involved stolen American identities and fictitious college students.
The embassy said intelligence and assistance from Kenyan authorities had enabled investigators to seize more than US$750,000 (about Sh97 million) in cryptocurrency from an account belonging to a Kenyan national linked to the alleged fraud.
The United States expressed gratitude to the Directorate of Criminal Investigations (DCI), Assets Recovery Agency (ARA), Office of the Director of Public Prosecutions (ODPP), Kenya Revenue Authority (KRA) and Financial Reporting Centre for their assistance.
“Tackling an international fraud ring of this scale is the result of longstanding cooperation between Kenya and the United States,” the embassy said.
It added that the joint investigation was continuing, saying efforts to combat fraud and protect citizens were not over.
The recognition comes days after the US Department of Justice announced the first results of Operation Ghostbusters, a nationwide investigation targeting networks accused of fraudulently obtaining federal student loans and grants.
The operation has so far resulted in charges against five defendants in Nebraska, Virginia and New Jersey, with investigators also pursuing alleged Kenyan accomplices.
Assistant Attorney General Colin McDonald said the operation was intended to protect American taxpayers and students from criminals exploiting government-funded financial assistance programmes.
“The Department is charging five defendants and announcing the seizure of more than $750,000 in cryptocurrency tied to this scheme through a network associated with Kenyan nationals,” McDonald said.
He warned that American investigators would pursue suspects regardless of their location, including those believed to be operating in Kenya.
“If you steal American identities, if you steal taxpayer dollars, if you exploit programs meant to help students build a future — we will find you,” he said.
In Nebraska, a Kenyan national was indicted on October 19 on five counts of theft of government money and five counts of aggravated identity theft.
Prosecutors allege that between November 2025 and May 2026, the suspect worked with associates in Kenya to use stolen identities to enrol fictitious students in American educational institutions and fraudulently obtain financial aid.
He allegedly retained 30 per cent of the proceeds before sending the remainder to his co-conspirators in Kenya. He was arrested and detained pending trial.
In a separate case, another Kenyan national was indicted in Virginia on October 21 over an alleged scheme involving approximately US$1.44 million (Sh180 million) in fraudulent student aid refunds.
Prosecutors allege that the suspect received more than 700 fraudulent deposits through multiple American bank accounts before transferring at least US$1.3 million to accounts in the United States and Kenya.
Meanwhile, three defendants arrested in New Jersey are accused of conspiring with individuals in Kenya to obtain more than US$1 million in federal student assistance through fraudulent applications.
Investigators allege that the money was channelled through American bank accounts before portions were transferred to Kenyan associates linked to a purported safari company.
The alleged fraud involved creating fictitious student accounts through the Free Application for Federal Student Aid (FAFSA), using personal information stolen from American citizens.
The identities were then allegedly used to enrol fictitious students in colleges and universities to trigger the release of government-funded loans and grants, despite the supposed beneficiaries never attending classes.
The FBI estimates that similar ghost-student schemes have caused more than US$32 million (Sh4.1 billion) in losses, with additional losses suspected.
The Justice Department believes the wider fraud network, which investigators say may have operated since at least 2021, could exceed US$200 million (Sh26 billion).
FBI Assistant Director Heith Janke said investigators would follow financial trails and pursue everyone involved.
“The FBI ... will follow all evidence, track every dollar, and pursue each criminal who seeks to exploit our nation’s systems,” he said.
