The value of terminated USAid contracts and grants in Kenya has now exceeded Ksh 108 billion following recent cancellations by the US government. This is a sharp increase from Ksh 32.5 billion in just over two weeks, raising concerns about the impact on various sectors that relied on these funds.
The biggest loss comes from a Ksh 67.29 billion contract between USAid and DAI Global, which was meant to support trade and investment between the US and African countries.
The contract, known as the Prosper Africa Trade and Investment Activity, was specifically designed to create business links between Kenyan enterprises and American investors, particularly in agriculture.
It was set to run from September 2021 to September 2026 but has now been scrapped. Another major contract that has been cancelled is an Ksh 8.4 billion deal between USAid and the International Development Group Advisory Services.
This agreement, called the Advancing Learning Outcomes in Africa Analytical Support programme, was aimed at improving education across the continent.
The project sought to enhance teacher training, improve curriculums, and tackle socio-economic issues such as poverty and gender disparities that affect education. Its termination could slow down efforts to improve education in Kenya and other African nations.
The US government has also cancelled a contract worth $1.293 million (Ksh 167.19 million) with the Boston Consulting Group. This contract, which was set to run until February 2025, was meant to assess the effectiveness of USAid’s programmes in Kenya and the larger East African region.
Without this assessment, it will be harder to measure the success and impact of US-funded development projects in the country.
Additionally, a five-year Ksh 11.49 billion contract with the Research Triangle Institute (RTI) has been terminated. This project, known as the Empower East and Central Africa programme, was designed to improve access to affordable energy in the region.
The programme, which was supposed to run from June 2023 to July 2028, was expected to bring electricity to underserved communities. Its cancellation could slow down energy access efforts, affecting economic growth and development in rural areas.
Other terminated contracts include a Ksh 27.93 million deal with ABT Global, which was meant to provide solar-powered energy solutions for rural health facilities in sub-Saharan Africa. The loss of this project could impact healthcare services in remote areas that depend on reliable electricity for medical equipment.
Also cancelled is a Ksh 573.6 million contract with the Consortium for Elections and Political Process Strengthening, which was intended to improve Kenya’s electoral system. This could have implications for future elections, particularly in areas where electoral reforms are still needed.
These cancellations come after President Trump ordered a 90-day review of US foreign assistance programmes as part of efforts to cut federal spending. The decision has raised questions about the future of US-Kenya development cooperation and the long-term impact of these funding cuts on key sectors such as trade, education, energy, and governance.
Many Kenyan stakeholders will now have to look for alternative sources of funding to keep critical programmes running.
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