US President Donald Trump has ordered a 90-day pause in foreign development assistance pending assessments of efficiencies and consistency with his foreign policy.
The Executive Order issued hours after his swearing-in on Monday, January 20, will impact Kenya, which is among countries that depend on aid from the US.
The order, among many Trump signed on his first day back in the office, said "the foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values” and “serve to destabilise world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries.”
"All department and agency heads responsible for United States foreign development assistance programs shall immediately pause new obligations and disbursements of development assistance funds," read the executive order signed by Trump.
Adding, “no further United States foreign assistance shall be disbursed in a manner that is not fully aligned with the foreign policy of the President of the United States.”
White House did not clarify how broad the order was and what programs, countries, non-governmental organisations, and international organisations would be affected by the move.
Given that Congress sets the federal US government budget, it was also unclear what funding could be cut. NGOs and the government are set to face financial constraints after a new order.
Kenya receives substantial foreign aid from the US, encompassing various sectors such as health, security, and economic development.
According to a 2020 report by AidData, the US contributions to Kenya were estimated at over $3 billion (about Ksh386.85 billion in the current exchange rates) annually, with approximately $1 billion (about Ksh128.95 billion in the current exchange rates) per year coming directly from foreign aid.
Most of this aid has historically been directed toward health initiatives through the US President's Emergency Plan for AIDS Relief (PEPFAR). Since its inception, Kenya has received about $7 billion (about Ksh902.65 billion in the current exchange rates) from PEPFAR over 15 years, making it one of the program's largest beneficiaries.
However, funding levels have seen reductions in recent years. For instance, in the fiscal year 2017-2018, Kenya received $570 million (about Ksh73.5 billion in the current exchange rates), which decreased to $500 million (about Ksh64.48 billion in the current exchange rates) the following year and was expected to be $370 million (about Ksh47.78 billion in the current exchange rates) in 2019.
The US has provided assistance in other areas in addition to health aid. In February 2023, the US government donated approximately Ksh16 billion (around $128 million) to support Kenya's drought relief efforts, aiming to meet the urgent needs of approximately 1.3 million people across the country.
Furthermore, during a state visit in May 2024, Kenya secured various agreements with the U.S., including a $3.6 billion deal to facilitate the Nairobi-Mombasa expressway and funding for other sectors such as education, security, and housing.
