Sh33bn Kenya contracts, grants axed in USAID purge

Donald Trump

US President Donald Trump ordered a 90-day freeze on foreign aid assistance moments after he took office on January 20, 2025.

Photo credit: Reuters

The US government has terminated five big-ticket contracts and grants in Kenya worth a combined Sh32.5 billion, marking the onset of President Donald Trump’s drastic cuts on aid to the country.

Disclosures through court filings showed that the US government has ended three USAID contracts in Kenya worth a combined Sh28.36 billion ($219.5 million) and two grants valued at Sh4.2 billion ($32.72 million).

More terminations expected in the coming weeks as the reviews progress on a case-by-case basis.

There is, however, uncertainty on the fate of many other programmes that the US government supports in Kenya for humanitarian projects, including support for HIV, malaria, tuberculosis and leprosy control and treatment.

The US State Department had issued waivers for some of the humanitarian projects amid the 90-day pause on foreign aid.

The contracts and grants terminated in Kenya are so far on education, clean energy and civic education.

A review showed that so far the biggest casualty of President Trump’s purge in Kenya is a five-year Sh11.49 billion ($88,993,687) contract between USAID and the Research Triangle Institute (RTI), which was scheduled to run between June 15, 2023, and July 31, 2028.

The contract dubbed the Empower East and Central Africa (EECA) programme was aimed at improving access to affordable, reliable, sustainable, and clean energy in East and Central Africa. The programme had 33 sub-contracts, with the RTI as the primary awardee.

The purge has also claimed another big-ticket USAID contract that had been awarded to the Education Development Centre to implement an initiative known as the Kenya Primary Literacy Programme (KPLP).

The KPLP was a five-year USAID-funded initiative that supported the Ministry of Education to expand innovations on language and literacy needs in primary schools. The $79 million (Sh10.2 billion) programme, which had two sub-contracted parties, was only in its first year of implementation having started in March 2024. It had been scheduled to run until September 2028.

The Trump administration’s purge on contracts in Kenya has additionally claimed a Sh6.66 billion ($51,561,587) deal between USAID and SoCha-- an independent monitoring, evaluation, and learning consultancy that provides solutions to social challenges.

The terminated SoCha contract was to help USAID staff and stakeholders in Kenya and the East Africa region become more efficient, transparent, and engage in sustainable activities. The SoCha-USAID contract was to run for about four years between September 30, 2022, and June 23, 2026.

The initial chops by the US government have also claimed big grant deals, including one between USAID and ABT Global. The Sh3.6 billion ($ 27.93 million) to ABT Global was aimed at electrifying and connecting rural health facilities in sub-Saharan Africa. The ABT Global grant from USAID targeted solar panels, battery storage systems, inverters, and the associated accessories and operations and maintenance services. The contract was scheduled to run between July 10, 2022, and June 10, 2027.

The purge has also claimed a Sh573.6 million ($4,440,000) grant deal between USAID and the Consortium For Elections and Political Process Strengthening to improve electoral integrity and democratic participation in Kenya’s political environment.

The ongoing funding cuts in Kenya and other countries across the world are part of a directive by President Trump to pause foreign development assistance through the giant USAID pending assessments of efficiencies and consistency with his foreign policy. Mr Trump had ordered a 90-day freeze on foreign aid assistance moments after he took office on January 20, 2025, but his government has since escalated its purge on USAID programmes and now even plans to scrap the agency altogether.

A federal judge on Thursday last week ordered Mr Trump’s administration to temporarily allow funds to the USAID. Judge Amir Ali issued the temporary order on Thursday following a lawsuit brought by two organisations, the AIDS Vaccine Advocacy Coalition, and the Global Health Council, representing health organisations receiving US funds for work abroad.

In his order, the judge noted that President Trump’s administration argued it had to shut down funding for the thousands of USAID programmes abroad to conduct a thorough review of each programme and whether it should be eliminated.

The judge said the US government officials, however, did not explain their decision to impose blanket suspension on foreign aid —a development that has rattled thousands of non-governmental organisations (NGOs), contractors, and other service groups.

USAID began sending termination notices to contractors and NGOs in Kenya on Wednesday last week —sparking chaos of job losses and potential lawsuits by service providers, landlords, and contractors who had been tapped by the non-state agencies.

The notices ended hopes for hundreds of workers and contractors who had anticipated resuming engagements with the aid agency once the review window declared by President Trump lapsed. Civil society organisations say more than 35,000 workers in Kenya risk losing their jobs in the wake of the suspension of US aid freeze.

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