Over KSh 40 Billion Stolen in US Child Feeding Fraud, Linked to Expensive Properties in Kenya

The United States Federal Bureau of Investigation (FBI) has stepped up investigations into a massive fraud scheme worth billions of shillings after some of the stolen money was linked to expensive properties in Kenya.

The fraud, which happened in Minnesota, involved money meant to feed vulnerable children and support housing programmes during the COVID-19 period. FBI Director Kash Patel confirmed that more agents and resources have now been sent to Minnesota to fully dismantle the network behind the scheme.

Fraud Money Meant to Feed Children

According to investigators, the fraudsters created fake daycare centres and food suppliers, then claimed government payments for meals that were never served to children. The scheme targeted a programme known as “Feeding Our Future”, now described as one of the biggest fraud cases in US history.

Authorities say more than USD 250 million (over KSh 40 billion) was stolen through fake vendors and shell companies.

“The investigation is far from over. We believe this is only a small part of a much bigger operation,” FBI Director Patel said, adding that the agency will continue following the money trail.

US court documents show that part of the stolen money was moved outside the United States through complex money-laundering networks. Kenya has been mentioned as one of the countries where the money was invested.

Investigators say the funds were used to buy high-end apartments in Nairobi, including properties in Eastlands, as well as prime coastal land and buildings. These investments are now under scrutiny, with Kenyan authorities expected to cooperate with US investigators.

So far, the FBI has secured 78 indictments and 57 convictions linked to the fraud. Some suspects have already been sentenced to long prison terms and ordered to repay millions of dollars.

The investigation also revealed shocking attempts to interfere with justice. In one case, suspects tried to bribe a juror with USD 120,000 (about KSh 15 million) in cash. Those involved later pleaded guilty and received heavy sentences, including jail terms of up to 10 years.

The fraud case has also attracted political attention in the US. Reports indicate that many of the accused are of Somali origin, leading to heated debate around immigration, fraud, and governance in Minnesota.

Former US President Donald Trump has used the case to criticise state leadership in Minnesota, accusing officials of failing to control large-scale fraud involving federal funds.