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Trump’s U.S. aid freeze order hits Kenya: Mass layoffs & other impacts

U.S President Donald Trump holding an executive order signed on his first day in office
U.S President Donald Trump holding an executive order signed on his first day in office

Kenya has been hit hard by U.S. President Donald Trump’s orders freezing aid foreign aid with players in the various sectors impacted by the freeze coming to terms with its realities.

From mass layoffs to a halt in critical programs in various sectors, the impact has been immense with a rallying call for self-reliance and an end to dependency on donor funding for critical programs.

The aid freeze that came with a stop-work order left many local government and non-governmental organizations cash-strapped, grappling with shock and uncertainty.

In Kisii County, more than 500 workers were sent home by the Department of Medical Services on Friday, January 31 following the aid freeze.

Kisii Governor and Orange Democratic Alliance (ODM) Deputy Party Leader Simba Arati

A letter signed by the county director of public health and sanitation directed them to hand over and wait for further guidance, citing the aid freeze.

“Following the US government directive regarding the suspension of all US government-funded activities, we regret to inform you that you should not report to work henceforth and advised otherwise,” reads the letter in part.

"Yes, it’s true the U.S. government has suspended funding of the HIV program they were working on in Kisii. This is affecting the entire government," stated Kisii County Health Minister Robert Nyakweba.

The situation is not any different in neighbouring Homa Bay County where hundreds of staff were directed to hand over and await further guidance.

Kisumu County's approach to ensure continuity of critical services

Kisumu County has taken the approach of phasing out standalone HIV comprehensive care centres supported by U.S. government aid while also integrating routine healthcare services in all level 2 and level 3 facilities to mitigate the impact of the aid freeze and ensure continuity in the provision of critical services.

Another significant impact USAID where all workers under the Fahari ya Jamii project have been placed on a compulsory three-month unpaid leave.

The directive which came into effect on February 1, 2025 affects more than 700 workers spread across Kajiado and Nairobi counties.

Minimising disruptions & programs affected

Programs affected by the aid freeze include support for vulnerable children, youth empowerment, research, and technical training of local staff.

U.S President Donald Trump holding an executive order signed on his first day in office

Experts noted that knee-jerk reactions by donors are not only disruptive, but also uncalled for as a donor transition would have been appropriate.

"When an abrupt decision like this is made, we are talking about over one million HIV patients. We are talking about many children. The humane way to go about it is to have a conversation with the countries and tell them that in the next three months or five years, we are going to be changing strategy and transitioning from your country. How prepared are you? And even walk together throughout the preparedness plan," Faith Ndung’u, the advocacy manager at the Health NGOs Network stated.

Experts are also calling for domestic funding of critical programs.

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