The official communication ordered all USAID/KEA Implementing Partners to “immediately stop, cease, and/or suspend any work” under their respective USAID contracts, task orders, grants, cooperative agreements, or other acquisition or assistance instruments
A major health and economic crisis is looming in Kenya following the abrupt suspension of all United States Agency for International Development (USAID) programs in the country until further notice.
The decision, announced by USAID/Kenya and East Africa (KEA) Supervisory Contracting Officer Jonathan Chappell in a communication dated January 26, 2025, is expected to have far-reaching consequences. The suspension is linked to the U.S. government’s recent foreign aid cuts under President Donald Trump’s administration.
For nearly six decades, USAID has played a crucial role in improving Kenya’s healthcare system, funding programs for education, family planning, maternal and child health, malaria and tuberculosis treatment, and HIV/AIDS interventions. The sudden halt in operations will impact millions who rely on these essential services.
The official communication ordered all USAID/KEA Implementing Partners to “immediately stop, cease, and/or suspend any work” under their respective USAID contracts, task orders, grants, cooperative agreements, or other acquisition or assistance instruments.
The suspension is legally backed by provisions such as FAR Clause 52.242-15 (Stop-Work Order) and 2 CFR 700.14 (Award Suspension and Termination). However, the U.S. Secretary of State has approved limited waivers for emergency food assistance and administrative expenses related to existing awards, subject to further review.
USAID-funded organizations have been instructed to acknowledge receipt of the suspension and confirm compliance. Employees have been informed that no further costs will be incurred related to Diversity, Equity, Inclusion, and Accessibility (DEIA) activities under their contracts or agreements.
Mass Job Losses and Economic Impact
The directive has sent shockwaves across Kenya, with thousands of workers employed under USAID-funded projects now facing sudden job losses.
A local organization affected by the suspension wrote to its employees:
“As you may be aware of the new U.S. administration’s stance on foreign aid, we have received communication advising us to temporarily halt implementation of all USAID-funded activities under the Tumikia Mtoto project with immediate effect.”
The letter further noted that all planned activities had been cancelled and that only legitimate expenses incurred before January 24, 2025, would be reimbursed.
A Kenyan affected by the suspension shared, “My niece has lost her job at an organization funded through USAID.”
USAID’s Role in Kenya’s Development
Beyond healthcare, USAID-Kenya has been instrumental in supporting Kenya’s economic growth through trade, agriculture, and infrastructure initiatives. It has also worked closely with the government to promote democracy, good governance, and conflict resolution.
With its operations now on hold, many critical projects risk collapsing, potentially reversing years of progress in health and economic development.
The suspension raises urgent concerns about Kenya’s preparedness to handle healthcare challenges without USAID support and the potential economic ripple effects of widespread job losses in the sector.
