Treasury Cabinet Secretary John Mbadi’s submission states that the effect of Donald Trump’s decision to freeze financial aid to developing countries will be largely felt at home.

Appearing before the senate plenary on Wednesday, March 5, 2025, CS John Mbadi revealed that the financial freeze on USAID (United States Agency for International Development) would create a Ksh52 billion deficit to the country.

The CS told senators that the financial cut would affect different sectors of the economy, with health being the biggest casualty.

Water and environmental sectors will also bear the brunt of Donald Trump’s decision to put on hold major financial support to the country.

“The total assistance, including health and the others, is approximately USD405.4 million, which is about Ksh52 billion for the financial year 2024/2025 from USAID, which as I have indicated, includes other sectors such as health, water and environment,” CS Mbadi told the lawmakers.

With the government pursuing other ways of breaching the financial shortfall, CS John Mbadi, however, disclosed that the government does not directly receive funds from USAID.

He made it clear that USAID implements its projects in the country independently.

US assistance to Kenya

According to Aid Data Network, the US contributes approximately KSh252 billion annually to Kenya’s economy, including Ksh129.4 billion in direct aid.

Furthermore, US agencies like the USAID have been a key driver in Kenya’s growth in various sectors including peacebuilding, devolution, and economic growth.

Their significant role includes their contribution to alleviating HIV through providing ARV drugs. However, the Ministry of Health recently came out to allay fears insisting that the country had sufficient ARV supply.

“I want to assure Kenyans that we have sufficient stock of HIV commodities, including ARVs and testing commodities. We have strengthened our supply chain pipeline to ensure continuous availability,” Director-General for Health, Dr Patrick Amoth affirmed.

Immediately after being sworn-in, Trump announced a raft of measures aimed at making America great again. Part of his executive orders included freezing and re-evaluating billions of US money sent to other countries.

He added that the money could be channelled into the US economy to help its citizens battling with various issues ranging from health and unemployment.

Trump was backed by billionaire Elon Musk, whom he tasked with promoting government efficiency.