US authorities are moving to seize Kenyan luxury properties bought using proceeds of a Sh39 billion Covid-era fraud uncovered in Minnesota. Investigators say the money was laundered into apartments and resorts. Federal authorities in the United States are working to recover assets linked to one of the biggest Covid-era fraud schemes. The case centres on a Minnesota nonprofit called Feeding Our Future. Investigators say more than $250 million meant for feeding children during the pandemic was stolen instead.
Much of that money ended up overseas. Court documents show some went to buy luxury properties in Kenya. Apartments in Nairobi and beach resorts along the coast are among the assets mentioned. US prosecutors have started the process to seize them.
The fraud happened between 2020 and 2022. Rules loosened during Covid to get food to kids fast. Nonprofits could claim reimbursement for meals served. Feeding Our Future and related groups opened hundreds of sites. They billed for millions of meals that never happened.
Dozens of people have been charged. Over 70 indictments so far. Many have pleaded guilty or been convicted. Sentences range from years in prison to big restitution orders. One defendant, Abdiaziz Farah, got 28 years earlier this year.
Farah and others sent money abroad quickly. Some used shell companies. Transfers went to Kenya, China, Turkey, and Somalia. In Kenya, funds bought real estate. One example is an apartment building in South C, Nairobi. Another is land in Mandera. A beach property in Diani came up too.
A Kenyan man, Ahmednaji Maalim Aftin Sheikh, faces charges for helping launder money. He is Farah’s brother. Prosecutors say he moved millions into Kenyan investments. That included a stake in a real estate firm.
Another defendant, Liban Yasin Alishire, pleaded guilty recently. He agreed to give up properties. That includes an apartment in Nairobi and part of Karibu Palms Resort on the Indian Ocean. The resort is in Diani.
Seizing property in another country is not easy. US courts can order forfeiture. But getting it done overseas needs cooperation. Kenya and the US have agreements on mutual legal help. Still, it takes time.
So far, authorities have recovered about $60 to $70 million. Mostly from US assets like homes, cars, and jewellery. Luxury vehicles and lakefront houses in Minnesota were seized. Overseas money is harder.
The case has grown. Investigators found fraud in other Minnesota programmes too. Autism services and housing aid. Billions in total losses are possible. Half of some federal funds may be gone.
Many defendants have Somali backgrounds. Minnesota has a large Somali community. Some money allegedly reached groups there. But most went to personal spending.
People bought high-end cars. Took trips to the Maldives. Purchased designer items. Court photos showed celebrations with champagne. Others invested in buildings back home.
In Kenya, real estate is a common way to park money. Nairobi property prices are high. Coastal areas attract investors. Experts say weak checks on foreign funds help laundering.
Kenyan officials have not said much publicly. No local charges reported yet. But the cases highlight gaps in anti-money laundering rules.
As 2025 ends, the probes continue. FBI and IRS agents trace more transfers. New plea deals mention Kenyan assets. Prosecutors want to sell what they can recover. Money goes back to taxpayers or programmes.
This story started small. One nonprofit claiming big meal numbers. It turned into the largest Covid fraud in the US. Kids went without help. Fraudsters lived large.
Now, luxury apartments in Nairobi and resorts on the coast are in the spotlight. US authorities push to bring them under control. It shows how far stolen money can travel.
People in Minnesota follow the trials. Taxpayers feel the hit. In Kenya, owners of these properties wait to see what happens next.
The investigations are ongoing. More details come out in court. For now, the push to seize Kenyan assets is part of wrapping up a massive case.
