US investigators are pursuing Kenyan suspects over alleged federal student aid fraud.
US prosecutors accuse Kenyan suspects of using stolen American identities to obtain federal education loans and grants.
The United States has charged several Kenyans over alleged student aid fraud involving stolen American identities. Prosecutors say the suspects used those identities to enrol in colleges and obtain federal loans and grants worth millions of dollars.
The charges follow an international investigation, Operation Ghostbusters, targeting fake student accounts used to access education funding. In an October 29 statement, the Justice Department also announced the seizure of about Ksh97 million in cryptocurrency. Investigators linked the account holding the funds to a Kenyan national allegedly involved in the scheme.
Assistant Attorney General Colin McDonald said foreign actors controlled bank accounts that received refunds after loan and grant disbursements. US-based money mules, including Kenyan nationals, allegedly helped move the funds. He warned that investigators would pursue suspects in both the US and Kenya.
Student aid fraud probe flags 830,840 accounts
The Justice Department said investigators identified 830,840 potentially fraudulent Federal Student Aid identification accounts used to obtain Ksh16.8 billion. Following that discovery, US security agencies recommended disabling the accounts to prevent further fraudulent applications and financial losses.
In Nebraska, a Kenyan citizen faces five counts each of theft of government money and aggravated identity theft. An October 19 indictment alleges that he obtained aid using stolen identities between November 2025 and May 2026.
Prosecutors say he worked with associates in Kenya to steal identities, enrol victims in educational institutions and redirect payments. He allegedly kept 30 per cent of the proceeds and sent the remainder to co-conspirators in Kenya. Court documents also allege that he received Ksh258,000 weekly and tried to recruit another participant.
Virginia and New Jersey cases allege transfers to Kenya
In Virginia, another Kenyan national faces charges under an October 21 indictment involving more than 700 allegedly fraudulent refunds. Prosecutors put their value at Ksh186 million.
Investigators also allege that the suspect used multiple bank accounts and thousands of transactions to move at least Ksh168 million. Those transfers went to accounts in the US and Kenya.
Meanwhile, authorities arrested three people in New Jersey over an alleged conspiracy involving more than Ksh129 million in federal aid. Prosecutors say the trio received funds through American bank accounts before transferring money to Kenyan co-conspirators associated with a purported safari company.
The Justice Department said it was also pursuing charges against two alleged co-conspirators in Kenya as the New Jersey investigation continued.
