- Donald Trump’s decision to freeze US aid will create a KSh52 billion deficit in Kenya.
- Treasury CS John Mbadi says health, water, and environment sectors will be worst affected.
- USAID funds projects independently and does not send money directly to the government.
- US contributes KSh252 billion annually to Kenya’s economy, with KSh129.4 billion in direct aid.
- Kenya has sufficient ARV stock, despite USAID’s role in HIV treatment programs.
Treasury Cabinet Secretary John Mbadi has warned that Donald Trump’s decision to freeze financial aid to developing countries will have a major impact on Kenya, creating a KSh52 billion budget deficit in the 2024/2025 financial year.
Appearing before the Senate plenary on March 5, 2025, Mbadi told lawmakers that health, water, and the environment will suffer the biggest setbacks due to the freeze on USAID (United States Agency for International Development) funding.
“The total assistance, including health and other sectors, is approximately USD 405.4 million (KSh52 billion) for the financial year 2024/2025,” Mbadi told senators.
Health Sector Among the Biggest Casualties
Despite the funding cut, the Ministry of Health has assured Kenyans that there is no shortage of HIV/AIDS treatment supplies.
“I want to assure Kenyans that we have sufficient stock of HIV commodities, including ARVs and testing kits. We have strengthened our supply chain pipeline to ensure continuous availability,” said Director-General for Health Dr Patrick Amoth.
How Much Does the US Contribute to Kenya?
According to Aid Data Network, the US contributes approximately KSh252 billion annually to Kenya’s economy, with KSh129.4 billion in direct aid. USAID has played a key role in funding health, peacebuilding, and economic growth programs in Kenya.
However, CS Mbadi clarified that the Kenyan government does not directly receive USAID funds, as the agency implements its projects independently.
Trump’s “America First” Policy in Action
After his swearing-in, Donald Trump signed executive orders freezing billions in foreign aid, stating that the money should be redirected to boost the US economy and support American citizens.
Billionaire Elon Musk, one of Trump’s close allies, has been tasked with improving government efficiency as part of the policy shift.
