Kenya Among Countries Affected as U.S. Cancels 401 Contracts Worth $2.1 Billion
The United States government has canceled two contracts linked to Kenya as part of a broader initiative to eliminate “wasteful” spending. The two Kenyan contracts, worth over Ksh 43 million combined, were among 401 contracts terminated by U.S. federal agencies this week.
In a statement released on Friday, May 2, the Department of Government Efficiency (DOGE) confirmed the cancellation of contracts valued at a total ceiling of Ksh 273 billion (approximately $2.1 billion). The move, spearheaded under the Trump administration, is expected to save the U.S. taxpayer around Ksh 79.7 billion ($613 million).
DOGE was launched through an executive order signed on January 20, 2025, during the second Trump administration. It aims to modernize government operations and reduce unnecessary federal expenditures.
Among the canceled contracts:
- A Ksh 35.9 million ($276,000) U.S. Treasury contract for a Kenya Program Coordinator.
- A Ksh 29.6 million ($228,000) Treasury contract for cruiser vehicles intended for use in Kenya, Uganda, Namibia, and Tanzania.
The statement did not elaborate on how these cancellations will impact current or future programs in Kenya, only that they are part of a global reduction effort.
Other contracts that were terminated include:
- A Ksh 3.1 million ($24,000) Department of Homeland Security (DHS) contract for a two-day training on equal opportunity in employment.
- A Ksh 1.95 million ($15,000) DHS contract for workplace advocacy with Out and Equal.
- A Ksh 767 million ($5.9 million) Department of Commerce contract for environmental consulting support services.
“Contract update! Over the last two days, agencies terminated 401 wasteful contracts… including a $276k Treasury contract for a ‘Kenya program coordinator’,” read the official update.
The U.S. has reiterated its commitment to financial efficiency, noting that the terminated projects, roles, or purchases will not proceed under the canceled agreements.
This development comes shortly after the United States African Development Foundation (USADF) also canceled grants worth over Ksh 6.7 billion ($51 million) on April 8. Among them was a Ksh 6.3 million ($48,406) grant for Kenya, which aimed to develop a WhatsApp chatbot for marketing support to local businesses.
As the U.S. tightens its fiscal policy, questions remain over how the cuts will affect ongoing development partnerships with African countries, including Kenya.
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Kenya Among Countries Affected as U.S. Cancels 401 Contracts Worth $2.1 Billion