Kenya to lose over Ksh.80B annually as Trump cuts foreign funding

A record 36 executive orders signed in Trump's first week saw the US pause foreign aid for 90 days and withdraw from the World Health Organisation (WHO). 

Experts have since predicted doom for developing nations that heavily rely on developed countries for economic sustainability. 

In Kenya, the United States has disbursed over Ksh.80 billion annually to fund critical programs such as the President's Emergency Plan for AIDS Relief (PEPFAR), malaria initiative and Global Health Security Agenda. 

According to the US Department of State, Kenya received Ksh.83.5 billion in 2024 out of an estimated Ksh.90 billion. 

The health sector received the largest share at Ksh.39.5 billion followed by humanitarian assistance (Ksh.27.8 billion), economic development (Ksh.7.1 billion), program support (Ksh.6.3 billion) and democracy (Ksh.1.2 billion). 

A total of Ksh.981 million was channelled to the education sector, while Ksh.309 million was disbursed to maintain peace and security across the country. 

For five years running, the health sector has received the largest share; amounting to Ksh.1.89 billion.

This has been channeled to critical programs such as PEPFAR and USAID that have saved over 26 million lives in over 50 countries by providing antiretroviral drugs, distributing vaccines and training healthcare providers. 

To put it into perspective, Kenya has received over Ksh.472 billion from the United States in the past five years alone, highlighting the dangers of overreliance on foreign aid.

The temporary pause on funding could emblematise catastrophe for Kenya if President William Ruto's administration fails to hit the reset button. 

To provide a glimmer of hope to the impending crisis, Treasury CS John Mbadi revealed that Kenya would reorganise its budget to fund critical programs affected by the temporal freeze on foreign aid. 

“We will have no alternative but to redirect part of the development budget to sustain crucial programs that could be starved of funds if the US halts foreign aid,” Mbadi said on February 3, 2025. 

Further, Health Director General Dr. Patrick Amoth assured the public that the Ministry has sufficient ARVs for at least six months and projected that development partners and private stakeholders would provide alternative funding. 

“We have enough HIV commodities, including antiretrovirals and testing kits,” he said.