Japhet Ruto, a journalist at TUKO.co.ke, has over eight years of experience in financial, business, and technology journalism, offering in-depth analysis of Kenya's economy and global market trends.

US president Donald Trump's administration has cancelled 83% of programmes offered by the United States Agency for International Development (USAID).

The powerful country's Secretary of State Marco Rubio announced on Monday, March 10, that the decision that will lead to job losses in Kenya and other countries, was made after a six-week review.

Rubio said 5,200 of USAID's worldwide initiatives had been discontinued to save Washington DC billions of dollars.

"Following a six-week evaluation, we are formally discontinuing 83% of USAID's projects. Tens of billions of dollars were spent on the 5200 contracts that are now cancelled in ways that did not further (and in some cases, even undermine) the United States' fundamental national interests," Rubio stated on X.

The State Department will manage the remaining programmes, which make up less than a fifth of America's previous assistance portfolio.

"The remaining 18% of the programmes we are preserving, or about 1000 projects, will now be managed more efficiently under the State Department after consulting with Congress. We are grateful to the Department of Government Efficiency (DOGE) and our dedicated employees who put in countless hours to accomplish this long-overdue and historic reforms," Rubio added.

Leshan Loonena Naisho, a Kenyan political economist specialising in international political economy, development policy, and international relations, told that Kenya must re-strategise.

Naisho opined that Nairobi should strengthen its position as a regional business hub.

"Kenya should focus on improving its business environment to attract US investment, particularly in the technology and manufacturing sectors."

He said Kenya must make good use of its unique allied status.

"President William Ruto's administration must tread carefully to preserve solid bilateral relations while defending national interests. This entails highlighting Kenya's strategic significance in East Africa, supporting American security cooperation priorities, and preserving diplomatic adaptability," he added.

The halting of foreign aid came after Trump's executive order on Monday, January 20.

The 47th US president called for a review in his 'America first' policy, noting that continued disbursement of funds under USAID advanced a liberal global agenda.

This sudden dissolution also upends years of bipartisan agreement, which recognised that humanitarian and development aid supports US security interests by stabilising vulnerable areas, promoting economic progress, and strengthening diplomatic relations.

The changes were backed by American billionaire Elon Musk, who leads DOGE.

Musk described USAID as a 'criminal organisation', leading to uproar.

Source: TUKO.co.ke