State to allocate Sh24.9bn after USAID freeze

The government has announced plans to allocate Sh24.9 billion to fund programs affected by the United States freeze on foreign aid.

The administration of US President Donald Trump introduced sweeping policy reforms, including the suspension of United States Agency for International Development (USAID) programs worldwide.

The drastic decision is feared to have severe economic repercussions, particularly in developing nations where thousands rely on USAID for food security, healthcare, and poverty alleviation efforts.

In Kenya, some of the most affected programmes could include HIV/AIDS initiatives.

During a national health summit on Monday, attended by both national and county government representatives, it was resolved that Kenya would continue engaging with the US to ensure the continuity of USAID-funded programs.

The government stated that it is pursuing diplomatic interventions to seek clarification, request waivers, and secure approvals for the continuation of these programs.

Should diplomatic efforts fail, the government plans to fully absorb the Sh24.9 billion shortfall into its national budget.

Already, Sh2 billion has been allocated for vaccines, with an additional Sh2.5 billion set aside to prevent disruptions from the Vaccine Alliance Gavi freeze.

"Certain development partners have recently made abrupt policy changes regarding the financing of health programs," Deputy President Kithure Kindiki said.

"I assure the nation that we remain committed to ensuring that any policy decisions by our development partners do not compromise the delivery of healthcare services in Kenya."

Kindiki reiterated that the government’s priority is to safeguard the quality of healthcare from the effects of foreign policy shifts.

"We are making all necessary contingency plans to prevent any disruptions in service delivery to the people of Kenya," he added.

During the summit, officials warned that Kenya risks recording 58,495 new HIV infections by 2030 if donor funding is reduced.

Currently, the US government contributes Sh24.9 billion to Kenya’s Sh79.8 billion health commodity budget.