The Donald Trump administration has added the World Trade Organization (WTO) and the International Labour Organization (ILO) to its latest list of foreign aid cuts.
On September 4, AFP reported that the Trump government had quietly dropped the two international organisations as it continued to reduce its foreign aid support.
The U.S. government had last Friday announced that it was cancelling Ksh633 billion ($4.9 billion) in foreign aid, a move that it said had already been approved by Congress.
In a memo, the White House stated that it was committed to getting America's fiscal house in order by cutting government spending that it deemed 'woke' and wasteful.
Since returning to the office in January, Trump has already dismantled large parts of USAID, and he had initially included several international organizations in the plan for the spending cuts.
The proposed budget cuts initially targeted the International Labour Organization (ILO) with a Ksh13.8 billion reduction and the World Trade Organization (WTO) with a Ksh3.7 billion cut.
No explanation has yet been given for why the two Geneva-based bodies were dropped.
"America First" Policy
The United States is still the largest financial contributor to the WTO, providing Ksh3.7 billion ($28.5 million) this year, or 11.4 percent of its budget.
As a founding member of WTO since 1995, Kenya benefits from the global rules and agreements that govern international trade. The WTO provides a stable and predictable environment for Kenya’s exports, including key products such as tea, fresh-cut flowers and coffee.
The reduction in the WTO’s budget is likely to impact its technical assistance programs, which help several nations, including Kenya, to understand and implement trade agreements.
Since Kenya relies on international trade for a significant portion of its GDP, a disruption to global trade rules could have a direct negative impact on the Kenyan economy and local jobs.
The Trump administration's "America First" policy has already seen cuts to other key U.S. foreign aid programs, particularly in the health sector.
For instance, a substantial amount of U.S. aid to Kenya is allocated to the health sector, particularly through programs like the President's Emergency Plan for AIDS Relief (PEPFAR). These funds are crucial for the provision of antiretroviral medicines and other medical supplies, as well as for staffing and running clinics across the country.
