Kenya is staring at a potential economic crisis following United States President Donald Trump’s drastic policy changes. A series of executive orders signed by Trump in his first week, including a 90-day pause on foreign aid and a withdrawal from the World Health Organization (WHO), has left many African nations, including Kenya, in a precarious position.
For years, the United States has been one of Kenya’s largest foreign aid contributors, providing over Ksh.80 billion annually to fund critical programs. These include the President’s Emergency Plan for AIDS Relief (PEPFAR), malaria initiatives, the Global Health Security Agenda, and economic development projects. In 2024, Kenya received Ksh.83.5 billion out of an estimated Ksh.90 billion, with the health sector receiving the lion’s share at Ksh.39.5 billion. Humanitarian aid, peace and security initiatives, and democracy programs also benefit from this vital funding.
However, with the U.S. freezing foreign aid, the potential loss of this funding could be devastating for Kenya. Over the past five years, Kenya has received more than Ksh.472 billion from the U.S., money that has helped save millions of lives. Programs like PEPFAR, which has provided antiretroviral drugs and vaccines, have contributed to significant improvements in healthcare. The freeze in funding threatens to disrupt these gains, leaving Kenya vulnerable to a rise in health and economic challenges.
To mitigate the damage, Kenya’s Treasury Cabinet Secretary, John Mbadi, announced plans to reorganize the national budget to sustain critical programs that rely on U.S. funding. “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 U.S. halts foreign aid,” Mbadi said on February 3, 2025.
Health Director General, Dr. Patrick Amoth, offered some reassurance, stating that Kenya’s Ministry of Health has enough antiretrovirals (ARVs) and other HIV-related commodities to last for at least six months. Dr. Amoth also expressed confidence that development partners and private sector stakeholders would step in to provide alternative funding.
Despite these efforts, the freeze on U.S. foreign aid represents a significant challenge for Kenya. The country’s overreliance on foreign assistance underscores the vulnerability of its development programs. President William Ruto’s administration will need to act swiftly to cushion the impact of this crisis and rethink Kenya’s economic sustainability model. Without a strategic shift, the freeze could have long-lasting effects on Kenya’s health, security, and overall development.
