Treasury Cabinet Secretary John Mbadi has disclosed that US President Donald Trump’s decision to cut USAID funding will leave Kenya with a Ksh.52 billion deficit in the 2024/25 financial year.
Appearing before the Senate, Mbadi outlined that the budget shortfall will impact key sectors, including health, governance, education, and food security.
Sector Breakdown of Lost Funding
- Education (Ksh.2.8 billion) – Funding was intended for teacher training, support for TVET institutions, scholarships, early grade literacy programs in public primary schools, and the Open University of Kenya.
- Governance (Ksh.1.1 billion) – The funds would have strengthened institutional capacity, supported voter education for the 2027 elections, helped counter violence in coastal counties, and backed government initiatives.
- Food Security (Ksh.16.5 billion) – USAID support was set to enhance food systems in ASAL regions, provide food aid to refugees in Dadaab and Kakuma, and invest in cooperatives and agricultural technology.
Government’s Response
CS Mbadi clarified that USAID funding is not directly factored into Kenya’s national budget but serves as critical supplementary support. With the funding now cut, the government plans to review its existing budget and prioritize essential areas to cushion the affected sectors.
Further deliberations are expected as the government explores alternative funding solutions.
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