Treasury Cabinet Secretary John Mbadi has raised fears that Kenya could face more donor financing constraints, especially from the programs funded by the European Union following similar cuts by the United States of America. 

Speaking during the Launch of the Anti-Corruption Strategic Guiding Framework For Kenya's Justice Sector in Nairobi on Tuesday, Mbadi admitted that the government was worried should the EU decide to take a similar course.

According to Mbadi, the decision was likely especially with emerging fears that the US could permanently order a freeze to the military activities in Ukraine. 

The freeze by the US, Mbadi stated could prompt the EU to redirect its aid to Ukraine and in turn cut 'unnecessary aid' in retaliation to enable it to concentrate on the situation between the western country and Russia. 

CS Hon.FCPA John Mbadi, EGH, held discussions with Ambassador Marc Dillard, February 4. 2025.

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The National Treasury

"When you hear what is happening globally, the world's biggest economies have indicated to us that they are no longer interested in supporting some of the activities that they used to support in this country. It must worry us," Mbadi cautioned.

"I am sure that the European Union will also not have any spare dollars, euros, or shillings to give us. Why? Because the moment the US cuts aid and support to Ukraine, we are also sure that they are going to divert resources to that war," he added.

According to Mbadi, Kenyans and the government have to adjust to this reality, even as the government faces more budget constraints.

Further, Mbadi revealed that it was time for the government to look into how it could generate its resources to support programs that initially relied on foreign aid.

He added that the situation had been worsened by the shrinking space for international borrowing which the government has already hit the ceiling on.

''We will be left looking inward as we have no space to look outwards. Unfortunately for us, it is the worst period for this country in terms of debt repayment.''

''This country has never been where we are today, we made decisions sometimes back to take loans which have now reached the peak,'' he added. 

Kenya receives significant aid from the EU. In 2024 alone, EU institutions provided Ksh 16.33 billion($125.6 million) in official development assistance (ODA) to Kenya. ​

USAID's 2020-2025 strategic plan for Kenya allocated Ksh 325 billion($2.5 billion), averaging about Ksh 61.23 billion($471 million) annually, with approximately 80 per cent directed toward healthcare initiatives, including HIV/AIDS, malaria, maternal and child health, and vaccinations. ​

National Treasury Cabinet Secretary John Mbadi flanked by other ministry officials during a press briefing on February 13, 2025, at the Treasury Building in Nairobi.

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National Treasury