Kenya Insights

Tag: USAid

  • American Billionaire Steps In as Trump Slashes US Aid to Kenya’s Health Sector

    American Billionaire Steps In as Trump Slashes US Aid to Kenya’s Health Sector

    Key Facts:

    – The Susan Thompson Buffett Foundation has granted Sh3.8 billion to Kenya’s health sector
    – The grant represents 18.1% of Kenya’s medical services project budget
    – Kenya faces a Sh24.9 billion funding gap due to US aid cuts
    – Warren Buffett plans to donate 99.5% of his $161 billion fortune to charity


    In a significant development for Kenya’s struggling health sector, billionaire investor Warren Buffett’s charitable foundation has announced a Sh3.8 billion ($30 million) grant to the country’s public health department, helping to ease the financial strain caused by recent US aid cuts under President Donald Trump’s administration.

    The Treasury’s budget estimates for the fiscal year starting July reveal that the Susan Thompson Buffett Foundation will, for the first time, directly finance the Kenyan government through the State Department of Medical Services.

    This timely intervention comes as Kenya grapples with a major funding gap following the Trump administration’s decision to drastically reduce foreign aid programs.

    The grant represents 18.1 percent of the Sh20.93 billion allocated for projects under Kenya’s State Department for Medical Services in the upcoming fiscal year, making the Buffett Foundation the third-largest multilateral donor to Kenya behind the World Bank and Global Fund.

    Kenya’s Ministry of Health had previously stated it needed approximately Sh24.9 billion to replace funding lost from US government sources, including an immediate Sh2 billion to address critical gaps in healthcare services.

    “This contribution couldn’t have come at a more crucial time,” said a senior health official.

    “With the freeze on US aid threatening essential health services across the country, private philanthropy is becoming increasingly vital.”

    Trump’s Aid Cuts Create Regional Health Crisis

    Hours after his January 2025 inauguration, President Trump ordered a comprehensive review of US foreign aid programs and tasked billionaire Elon Musk with scaling down the United States Agency for International Development (USAid), which Musk has publicly criticized as a “criminal” organization.

    The subsequent aid cuts have severely impacted health programs throughout Africa.

    The World Health Organization has warned that eight countries—six in Africa, including Kenya—could soon deplete their HIV drug supplies due to the pause in US assistance.

    The crisis extends beyond HIV treatment, affecting vaccine procurement through the Global Alliance Vaccine Initiative (GAVI) and environmental conservation efforts.

    Buffett’s Quiet Intervention

    At 94, Warren Buffett, the world’s sixth-richest person according to Bloomberg’s Billionaires Index, has stepped in where government support has retreated.

    The Susan Thompson Buffett Foundation, named after his late first wife and managed by his children, typically supports reproductive health initiatives, including access to contraception and safe abortion services.

    This direct funding to Kenya’s government marks a shift in approach for the foundation, which has historically channeled support through non-governmental organizations.

    Buffett, who recently announced his retirement as CEO of Berkshire Hathaway, has been a vocal critic of President Trump’s economic policies.

    During a recent shareholder meeting, he criticized Trump’s approach to tariffs, stating they “can be an act of war” and that “trade should not be a weapon.”

    While the Buffett Foundation’s contribution provides critical relief, it addresses only about 15 percent of Kenya’s funding shortfall from US aid cuts.

    Other private organizations and philanthropists are also stepping in, with GAVI committing a Sh2.6 billion grant to the State Department for Medical Services.

    USAid has promised a smaller grant of Sh231.56 million directly to the department, though this represents a fraction of its previous support.

    Last year, USAid allocated Sh19.2 billion to various Kenyan programs, already down from Sh32.4 billion the year before.

    As international aid dynamics shift under the Trump administration, Kenya and other African nations face the challenge of diversifying their funding sources for essential public services.

    Private philanthropy, while helpful, raises questions about the sustainability and predictability of health financing in developing nations when subject to the changing priorities of wealthy individuals and organizations.

    Buffett has pledged to donate 99.5 percent of his wealth—currently valued at more than $161 billion (Sh20.8 trillion)—to charitable causes upon his death, with most going to a trust overseen by his children rather than the Gates Foundation, which had previously been his primary philanthropic vehicle.

    For now, Kenyan officials welcome the support, which provides a lifeline for essential health services while the government works to develop more sustainable funding solutions.

  • Trump Administration Laying Off 2,000 USAID Workers

    Trump Administration Laying Off 2,000 USAID Workers

    The administration of US President Donald Trump said Sunday that it is eliminating 2,000 positions at the United States Agency for International Development (USAID) and placing nearly all other staffers on administrative leave.

    According to multiple media sources, an email has been sent to USAID employees stating that “as of 11:59 p.m. EST on Sunday, February 23, 2025, all USAID direct hire personnel, with the exception of designated personnel responsible for mission-critical functions, core leadership and/or specially designated programs, will be placed on administrative leave globally.”

    The agency also intends to launch a program to pay for their return home if the employees desire to.

    Subsequent emails are expected to reveal more details, as stated in the email received by numerous USAID employees, on how to proceed in the coming weeks.

    The Trump administration, following suggestions from US tech billionaire Elon Musk, who heads the Department of Government Efficiency (DOGE), initiated the shutdown of USAID’s operations domestically and internationally.

    The move has led to widespread disruptions in global aid programs, affecting non-governmental organizations and media organizations that rely on the agency’s funding.

    USAID was established by President John F. Kennedy in 1961. Later, Congress established USAID as an independent agency, meaning that an act of Congress would be required to eliminate it.

  • “Stop Laughing At Us. You Left Us With These Deals,” Governor Mutula Kilonzo Fires Back at Uhuru Over Trump’s Foreign Aid Freeze

    “Stop Laughing At Us. You Left Us With These Deals,” Governor Mutula Kilonzo Fires Back at Uhuru Over Trump’s Foreign Aid Freeze

    Makueni Governor Mutula Kilonzo Junior has strongly criticized former President Uhuru Kenyatta over his recent reaction on African leaders’ response to the United States’ decision to cut foreign aid.

    Speaking on the impact of the aid freeze, Mutula dismissed Kenyatta’s comments as misplaced, arguing that the withdrawal of support from the US particularly US Agency for International Development (USAID) poses a significant crisis that should be urgently addressed rather than trivialized.

    Governor Mutula took issue with former President Kenyatta’s remarks that the aid cut should be a wake-up call for African nations to reduce their dependence on foreign assistance.

    “I disagree entirely with President Uhuru Kenyatta [over his statement on the freeze
    of foreign aid]because if that was his thought he should have said so when he was President,” Mutula said.

    “He can’t say so when he is out of office and he left us with all these deals which were done while he was in office.”

    The Makueni Governor claimed that, ex-President Uhuru “can’t laugh at Kenyans” saying in essence he was “laughing at the very people he used to serve.”

    Uhuru made the statement on January 29 during the East Africa Region Global Health Security Summit in Mombasa where he was the chief guest, criticizing those decrying the aid cuts, arguing that it was time for African nations to take charge of their own development.
     
    “I saw some people crying the other day, saying Trump has removed money and won’t give us money anymore. Why are you crying? It’s not your government, it’s not your country. He has no reason to give you anything. you don’t pay taxes in America, he is appealing to his people, woe unto you ,” he said.
     
    He implored African leaders to find better ways to utilize their resources at home and reduce dependency on foreign funding.
     
    “It’s time for us[leaders]to use our resources for the right things, we are the ones who are using them for the wrong things.”

    However, the Makueni governor has called for a united front beyond political affiliations to address the crisis, emphasizing that health is a critical issue that should not be politicized.

    “This is a matter of concern, health is a big issue, and I think that as a nation we must come together, close ranks beyond our little parochial politics and discuss matters of health.”

    He termed the announcement by the US to cut aid as a “national crisis that must be dealt with immediately.”

    He expressed deep concern over the fate of critical health programs, including those tackling tuberculosis (TB) and HIV/AIDS, which heavily rely on USAID funding.

    While the government has assured that Kenya has enough stock of antiretroviral (ARV) drugs for the next 15 months, Mutula warned that there is no clear transitional plan for what will happen after that period.

  • Musk Says USAID To Shut Down As Employees Told To Stay Home

    Musk Says USAID To Shut Down As Employees Told To Stay Home

    Elon Musk said the Trump administration would close the United States Agency for International Development (USAID) as employees were told to stay home on Monday amid uncertainty about its future.

    The billionaire Trump adviser’s comments came amid turmoil after two top security officials were placed on leave. The agency’s website has not worked since Saturday.

    But President Trump was less definative about shuttering the agency, telling reporters on Sunday night that USAID was run by “a bunch of radical lunatics”.

    “We’re getting them out,” he said, “and then we’ll make a decision.”

    Over the last week, Musk railed against USAID as he sought to assert control over the agency.

    On X, the social media platform that he owns, he called it “evil” and a “criminal organisation”. In a live stream on X early Monday, he told followers, “You’ve got to basically get rid of the whole thing. It’s beyond repair. … We’re shutting it down.”

    Staffers who work at the agency’s Washington DC headquarters were told to stay home on Monday. Hundreds of employees were also locked out of their email, according to CBS, the BBC’s American news partner.

    An effort could be underway to bring the agency, which was established by an act of the US Congress, more directly under the control of Trump’s Secretary of State, Marco Rubio.

    Republican congressman Brian Mast, who chairs the House Foreign Affairs Committee, told “Face the Nation” that USAID is “likely going to be rolled more closely under Secretary Rubio.”

    Whether the agency is shut down or restructured, the changes sought by Musk and Trump would have far-reaching implications. USAID distributes billions in aid to non-governmental organisations, aid groups and nonprofits around the world.

    With its website down, several key information reserves, including an international famine tracker and decades of aid records, appeared to be unavailable.

    Top officials have been placed on leave or resigned in the last two days following clashes with Musk’s Department of Government Efficiency (Doge), a team set up within the administration that Trump has given broad leeway to slash government spending.

    It is not, however, an official government agency.

    Members of Doge clashed with the security officials after requesting access to a highly secure area used for reviewing classified information, the Washington Post and CNN reported this weekend.

    USAID director for security John Vorhees and deputy Director for Security Brian McGill, were both placed on administrative leave as a result, CBS reports.

    A top political appointee, chief of staff Matt Hopson, also resigned, the Washington Post reported.

  • Musk Brands USAID ‘Criminal’, Trump Calls Its Leaders ‘Radical Lunatics’

    Musk Brands USAID ‘Criminal’, Trump Calls Its Leaders ‘Radical Lunatics’

    Elon Musk attacked the US Agency for International Development, calling it a “criminal organization” on Sunday, as Donald Trump said the agency was “run by radical lunatics” and said he was considering its future.

    The assault on the agency tasked with humanitarian relief overseas marks a significant new front in Trump’s move to give unprecedented power to Musk to upend government departments and counter what the pair consider wasteful official spending and overreach.

    “USAID is a criminal organization,” Musk, the billionaire owner of Tesla and SpaceX who has become the president’s most powerful backer, wrote on his X platform, replying to a video alleging USAID involvement in “rogue CIA work” and “internet censorship.”

    In a subsequent post, Musk doubled down and, without giving evidence, asked his 215 million X followers, “Did you know that USAID, using YOUR tax dollars, funded bioweapon research, including Covid-19, that killed millions of people?”

    He did not elaborate on the allegations, which officials in the previous administration linked to a Russian disinformation campaign.

    The United States Agency for International Development has “been run by a bunch of radical lunatics, and we’re getting them out… and then we’ll make a decision (on its future),” Trump said on Sunday without elaborating.

    He underscored his support for Musk, telling reporters Sunday night he felt the billionaire was “doing a good job” even if they did not agree on every point.

    “He’s a big cost-cutter. Sometimes we won’t agree with it or we’ll not go where he wants to go…he’s a smart guy. Very smart. And he’s very much into cutting the budget of our federal government,” Trump said.

    Trump initially froze all aid spending for three months, and though he subsequently issued waivers for food and other humanitarian aid to continue, aid workers say uncertainty reigns with the future of the organization as an independent agency far from assured.

    USAID, an independent agency established by an act of Congress, manages a budget of $42.8 billion meant for humanitarian relief and development assistance around the world.

    A senior official from a US-based organization feared that the prioritization of “emergency” assistance was part of a broader plan in which Washington would discontinue funds for anything else.

    There have been reports Trump wants to roll USAID into the State Department. His team did not respond to AFP calls for comment.

    ‘Total destruction’

    Musk has indicated he will give an update on the work of his Department of Government Efficiency (DOGE) in a talk broadcast on his X platform at midnight Washington time (0500 GMT).

    It is unclear what will be covered in the event, but it could give further insight into the unchecked effort by Musk to map out government expenditure and operations.

    Since Trump’s inauguration Musk has addressed far-right groups in Europe, given an infamous raised-arm gesture compared to a Nazi salute, and attacked the Treasury for making authorized payments on the government’s behalf.

    DOGE was founded as part of the so-called “executive office of the president,” as a temporary 18-month organization under the repurposed United States Digital Service.

    It does not enjoy full status as a government department, which would require the approval of Congress, and Musk is neither federal employee nor a government official. It is unclear to whom DOGE is accountable.

    CNN reported that two senior security officials at USAID were put on forced leave after they barred staff from Musk’s DOGE from accessing classified documents as part of their sprawling effort to inspect the government’s books.

    The two DOGE representatives also wanted to access staff files and security systems at USAID’s headquarters, the broadcaster reported, citing multiple sources.

    PBS also reported that DOGE staff attempted to gain access to “secure spaces.”

    Steven Cheung, a senior aide to Trump, posted on X that the PBS report was “legitimately FAKE NEWS. Not even remotely true at all. This is how unserious and untrustworthy the media is.”

    USAID’s account on X had been disabled, AFP confirmed, and the agency’s website was still offline.

    Democratic Senator Chris Murphy has criticized the “total destruction” of the agency.

    “The people elected Donald Trump to be President — not Elon Musk,” Congresswoman Alexandria Ocasio-Cortez wrote on X.

    “Having an unelected billionaire, with his own foreign debts and motives, raiding US classified information is a grave threat to national security,” she said.

    (AFP)

  • ‘Trump Has No Reason To Give You Anything, You Don’t Pay Taxes In The US’ Uhuru Urges Africa Leaders To Stop Complaining and Take Responsibility On Aid Freeze

    ‘Trump Has No Reason To Give You Anything, You Don’t Pay Taxes In The US’ Uhuru Urges Africa Leaders To Stop Complaining and Take Responsibility On Aid Freeze

    Retired President Uhuru Kenyatta has called on African leaders to stop complaining and take responsibility for their nations’ development following the suspension of foreign aid by U.S. President Donald Trump.

    Speaking at the inaugural East Africa Region Global Health Security Summit in Mombasa on Wednesday, January 29, 2025, Uhuru emphasized the need for self-reliance and prudent use of resources.

    “I saw some people the other day crying that Trump has removed funding. It is not your government, it’s not your country. He has no reason to give you anything. You don’t pay taxes in America. He is appealing to his people. This is a wake-up call for you to say, ‘Okay, what are we going to do for ourselves?’” Uhuru stated.

    The former president criticized African leaders for misallocating resources, particularly on unnecessary conflicts and wars. “Nobody is going to continue holding a hand out there to give you (money). It is time for us to use our resources for the right things. We are the ones using them for the wrong things. The bullets and the guns we buy are not given for free. We buy them. And we are not buying them to go and fight wars off our shores. We are fighting our own people. Brother killing sister, sister killing brother over stupid things,” he added.

    Trump’s Foreign Aid Freeze Sparks Global Concerns

    President Trump’s executive order, issued shortly after his inauguration, imposed a 90-day freeze on nearly all foreign development assistance. The move is part of his “America First” policy, which aims to realign U.S. foreign aid priorities. In the 2023 fiscal year, the U.S. allocated nearly $70 billion in development aid, primarily through the U.S. Agency for International Development (USAID).

    The freeze has left thousands of employees in low and middle-income countries, including Kenya, without salaries and facing uncertain futures. Local employees in Kenya have already been sent home, while in the U.S., at least 56 senior USAID officials were placed on leave, and hundreds of contractors were laid off as of January 27.

    The suspension has disrupted critical humanitarian, development, and security programs worldwide, with organizations struggling to cover operational costs such as rent and utilities. Layoff notices are expected to be issued by February 2025, further exacerbating the crisis.

    Internal Tensions at USAID

    Jason Gray, USAID’s acting administrator, revealed in an internal memo that attempts were made within the agency to bypass Trump’s directive, highlighting internal tensions over the policy. The freeze has sparked widespread concerns about the fate of vital aid programs and the livelihoods of thousands of affected workers globally.

    A Call for Self-Reliance

    Uhuru’s remarks come at a critical time as African nations grapple with the implications of reduced foreign aid. His call for self-reliance and responsible governance resonates with many who believe that African leaders must prioritize sustainable development and peace-building over wasteful expenditures.

    As the 90-day review period progresses, the global community watches closely to see how the U.S. will realign its foreign aid priorities and what steps African nations will take to address the funding gap. For now, Uhuru’s message is clear: it’s time for Africa to stop relying on handouts and start investing in its own future.

  • USAID Lays Off Kenyan Employees In Trump’s Aid Cut Shockwave

    USAID Lays Off Kenyan Employees In Trump’s Aid Cut Shockwave

    The recent 90-day suspension of foreign assistance by former U.S. President Donald Trump has left thousands of Kenyan employees linked to the United States Agency for International Development (USAID) without their January salaries and facing uncertain futures.

    The executive order, affecting humanitarian, development, and security programs worldwide, has caused immediate disruptions. USAID operations in Kenya have come to a standstill, with local workers being sent home and programs halted. This sudden stoppage has led to a scramble among aid organizations to manage expenses like rent and utilities, with the looming threat of layoffs becoming increasingly real.

    “The impact of this funding freeze is devastating,” said a local USAID employee, who wished to remain anonymous due to the sensitive nature of the situation. “We’re not just talking about our jobs; these programs touch on health, education, and security, directly impacting the lives of many Kenyans.”

    In the United States, the effects are equally harsh. An internal memo from USAID’s acting administrator Jason Gray, leaked to the press, reveals that at least 56 senior officials have been placed on leave, and hundreds of contractors have been dismissed. The memo also hints at an internal struggle within USAID, where efforts were made to circumvent the President’s directive, showcasing significant discord over the policy’s implementation.

    The suspension has not only endangered the livelihoods of aid workers but also threatens the continuation of critical programs across Kenya. Health initiatives, educational projects, and security enhancements, among others, are at risk of either being significantly delayed or altogether terminated, which could have dire consequences for the communities they serve.

    Aid organizations, caught in this financial bind, are now forced to consider drastic measures. “We’re looking at potential layoffs by February if this situation persists,” said an executive from one of the affected NGOs, who also spoke under anonymity. “We’re trying to find alternative funding, but for many programs, USAID was our primary source.”