The United States Agency for International Development (USAID) has issued a directive halting ongoing work on various initiatives that are likely to affect development projects across Kenya and the East African region.
The announcement follows the release of an Executive Order titled “Reevaluating and Realigning United States Foreign Aid,” which has mandated immediate adjustments to the way US foreign aid is administered.
According to a notice from the USAID Industry Liaison, the directive requires Contracting and Agreement Officers to immediately issue stop-work orders, and amend, or suspend existing awards, to ensure compliance with the terms of the new policy.
Consequently, implementing partners across Kenya and East Africa have been informed that their organizations will soon receive stop-work or suspension notices from the USAID/Kenya and East Africa Office of Acquisition and Assistance.
“In accordance with the President’s Executive Order on Reevaluating and Realigning United States Foreign Aid and additional direction provided by the Department of State,
“USAID is pausing all new obligations of funding, and sub-obligations of funding under Development Objective Agreements (DOAGs), pending a review of foreign assistance programs funded by USAID,” the statement read in part.
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Affected Programs Receiving USAID Funding
The directive issued by USAID Senior Procurement Executive Jimi J. Rodgers applies to all program accounts classified as Title III.
These are programs that require funding but exclude Operating Expenses. Also, the Capital Investment Fund Account under Title II will be affected.
This pause impacts all funding instruments, including grants, cooperative agreements, and contracts, while also suspending new funding opportunities.
Moreover, USAID Contracting and Agreement Officers are required to immediately Issue stop-work orders.
Also, they have been directed to amend or suspend current awards and withhold modifications, extensions, or renewals unless expressly authorized.
“Each award will undergo a comprehensive review to determine whether it aligns with the administration’s foreign policy agenda.
“Following this evaluation, USAID officers will communicate decisions to contractors and award recipients on whether awards will be modified, continued, or terminated.
“The pause is necessary to ensure U.S. foreign aid is consistent with the President’s priorities and strategic goals,” the directive reads.
Additionally, the notice imposes a freeze on issuing new awards, requests for proposals (RFPs), applications (RFAs), or notices of funding opportunities (NOFOs). These activities will remain suspended until reviewed and approved by the administration.
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Exceptions and Temporary Waivers
Despite the pause, certain categories of foreign assistance have been granted temporary waivers.
These include Emergency Food Assistance. This is funding issued for emergency food aid and related administrative expenses.
Salaries and Administrative costs are also exempted. This means that temporary funding is allowed for personal services contractors’ salaries and travel expenses.
Further, pre-2025 expenses, including Legitimate costs incurred before January 24, 2025, or those related to stop-work orders, suspensions, or amendments tied to the pause, will be reimbursed.
Other exceptions may be granted upon approval by the Director of Foreign Assistance. These waivers provide a lifeline to some programs but leave many others in limbo as the review process unfolds.
Within 30 days, the Department of State’s Policy Planning Staff (S/P) will develop review standards to evaluate existing and planned foreign aid activities.
The review, set to be completed within 85 days of January 24, 2025, will determine the future of programs and funding.
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Impact on Kenya’s Mission in Haiti
Although the US is the largest donor of Haiti, it does not provide direct funding to the Caribbean nation.
Instead, it channels tens of millions of dollars annually for programs related to reproductive health, HIV/AIDS treatment, and development through nonprofits and implementing partners receiving U.S. government funds.
Additionally, the Bureau of International Narcotics and Law Enforcement Affairs (INL) manages funding for police and security initiatives.
USAID distributes funds to programs focused on water and sanitation, food aid, and agricultural support, while INL trains and equips the Haiti National Police, providing them with everything from night vision goggles and firearms to a new specialized SWAT unit.
Haitians and local service providers believe the suspension of aid is a devastating blow to a nation already struggling with a $2.5 billion budget for its 12 million citizens.
The stop in aid threatens to worsen an already dire situation, as gangs are perpetrating mass massacres, the healthcare system is on the brink of collapse, and diseases like HIV and tuberculosis are resurging, while maternal deaths continue to rise.
Port-au-Prince-based economist Kesner Pharel noted, “I do not have the specific numbers by sector, but I imagine this can have a negative impact on security and health.”
The second cohort of Kenyan police officers were deployed to Haiti on January 18, 2025, as part of the United Nations-backed peacekeeping mission.
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