US Govt Cancels Multi-Million Contracts With Kenya

Kenya has once again been hit by ongoing contract cancellations carried out by the Department of Government Efficiency (DOGE).

DOGE is an initiative launched during the second Trump administration aimed at reducing federal spending and modernizing government operations.

In a statement earlier today, DOGE, which was founded by billionaire Elon Musk, announced that it had canceled a Ksh35.9 million ($276,000) Treasury contract for a “Kenya Program Coordinator.”

Separately, Kenya was also part of a multi-country vehicle distribution deal valued at Ksh29.6 million ($228,000).

"Over the last two days, agencies terminated 401 wasteful contracts with a ceiling value of $2.1 billion (Ksh273 billion) and savings of $613 million, including a $276,000 Treasury contract for a ‘Kenya Program Coordinator,’ a $228,000 Treasury contract for ‘Kenya, Uganda, Namibia, and Tanzania cruiser vehicles,’ a $24,000 DHS contract for a ‘two-day training on equal opportunity in employment,’ a $15,000 DHS contract for ‘Out & Equal workplace advocates,’ and a $5.9 million DoC contract for ‘environmental consulting support services,’" read the statement in part.

Why This Matters: Kenya, in recent months, has been forced to re-evaluate its deals with foreign countries and entities after President Donald Trump introduced reciprocal tariffs, arguing that the US often got the short end of the stick.

On April 30, DOGE announced that it had terminated 179 wasteful contracts valued at Ksh242 billion, including a deal with Namibia.

Earlier that day, DOGE also revealed that it had canceled 420 wasteful grants valued at Ksh323 billion, including one related to climate resilience and sustainable agriculture in Ghana.

This means that the projects—including those in Kenya—that were dependent on US funding will be halted indefinitely.

The ripple effect is already being felt in Kenya, with landlords in posh estates reporting turbulence as tenants who relied on USAID-backed projects moved out of their homes when the funding stopped.

President William Ruto, meanwhile, traveled to China, where he signed several deals, including funding for the dualing of the Nairobi–Nakuru Highway.