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USAid contract, grant cuts in Kenya now hit Sh108bn
President Trump’s administration said that it was eliminating more than 90 percent of the USAid’s foreign aid contracts and $60 billion (Sh7.75 trillion) in overall US assistance around the world.
The value of big-ticket contracts terminated by the US government in Kenya has crossed the Sh108 billion mark even as President Donald Trump’s government issued more closure notices, vowing to cut back on foreign aid.
New disclosures show that eight USAid contracts and grants worth a combined Sh108.34 billion ($839.47million) have now been terminated in Kenya, putting pressure on thousands of beneficiaries as a 90-day review of aid support programmes nears half-way mark.
The foreign aid cuts are aligned with Trump’s "America First" agenda.
The value of the terminated programmes has grown rapidly from Sh32.5 billion in just over two weeks ago and could rise further.
A $520,776,180 (Sh67.29 billion) contract to development firm DAI Global now stands as the single-biggest casualty of a purge by the US Department of Government Efficiency (DOGE) on USAid projects in Kenya.
The DAI Global contract dubbed Prosper Africa Trade and Investment Activity was scheduled to run from September 25, 2021 to September 24, 2026, and aimed to boost trade and investment between the US and African nations.
The DAI Global programme has been actively involved in Kenya by facilitating connections between Kenyan businesses and American investors, particularly in sectors like agriculture, with notable activities including supporting investments in canola oil production through AgDevCo funding, market assessments to identify investment opportunities, and collaborating with USAid Kenya East Africa Mission to promote private sector engagement in the region.
DOGE --an advisory initiative of President Trump’s second administration in the US that is tasked with reducing federal spending on contracts, grants, and loans— has also terminated a $64,999,195 (Sh8.4 billion) deal in Kenya between USAid and the International Development Group Advisory Services.
The contract dubbed Advancing Learning Outcomes in Africa Analytical Support (ALOA) targeted improving education in Africa through teacher training, curriculum development, access to quality learning materials, and addressing underlying factors like poverty and gender disparities.
DOGE, which is being run by billionaire Tesla Chief Executive Officer Elon Musk, has also terminated a $1,293,621 (Sh167.19 million) contract in Kenya with the Boston Consulting Group and USAid. The contract, dubbed “Fit-for-purpose assessment for USAid Kenya and East Africa”, was scheduled to run between September 25, 2023, and February 16, 2025.
The list of terminated US contracts in Kenya also includes a five-year Sh11.49 billion ($88,993,687) deal 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.
President Trump’s purge has also claimed another big-ticket USAid contract in Kenya 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 in Kenya 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 kicked off in March 2024 and had been scheduled to run until September 2028.
The contract cancellations in Kenya have additionally claimed a Sh6.66 billion ($51,561,587) deal between USAid and SoCha --an independent monitoring, evaluation, and learning consultancy that provides solutions to social challenges.
The SoCha contract was to help USAid staff and stakeholders in Kenya and the East Africa region become more efficient and transparent, and engage in sustainable activity. The SoCha-USAid contract was to run for about four years between September 30, 2022 and June 23, 2026.
The initial chops by the US government have also claimed big grants, including one between USAid and ABT Global. The Sh3.6 billion ($ 27.93 million) agreement with ABT Global was aimed at electrifying and connecting rural health facilities in sub-Saharan Africa.
It targeted solar panels, battery storage systems, inverters, and the associated accessories and operations and maintenance services.
The contract between USAid and ABT Global was scheduled to run between July 10, 2022, and June 10, 2027.
The purge has also claimed a Sh573.6 million ($4,440,000) contract between USAid and the Consortium For Elections and Political Process Strengthening to improve electoral integrity and democratic participation in Kenya’s political environment.
President Trump’s administration last week said that it was eliminating more than 90 percent of the USAid’s foreign aid contracts and $60 billion (Sh7.75 trillion) in overall US assistance around the world.
President Trump on January 20, 2025 ordered what he said would be a 90-day programme-by-programme review of which foreign assistance programmes deserved to continue, and cut off all foreign assistance funds almost overnight.
USAid started sending termination notices to contractors and NGOs in Kenya nearly three weeks ago, sparking chaos amid 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 expected resuming engagements with the aid agency once the review window declared by President Trump lapsed.
