Kenya First to Benefit From Direct US Health Fund After Foreign-Aid Pullback
Kenya has secured a landmark five-year, $1.6 billion health cooperation agreement with the United States, becoming the first country to benefit from a new, direct government-to-government funding model at a time when Washington has sharply reduced support to most developing nations.
Under the new framework, US funding will be channelled directly to Kenya’s public health institutions instead of international non-governmental organisations, marking a shift from the decades-old aid architecture that relied largely on third-party implementers.
President William Ruto witnessed the signing in Washington alongside Prime Cabinet Secretary Musalia Mudavadi and US Secretary of State Marco Rubio.
Ruto said the partnership would boost Kenya’s drive towards universal health coverage, modernise hospital equipment, strengthen the Social Health Authority, and expand disease surveillance and emergency preparedness.
“The framework reinforces our commitment to equip our hospitals with modern facilities, improve the delivery of essential medicines, enhance our health workforce and ensure health insurance access for all Kenyans,” Ruto said, adding that every dollar would be used “efficiently, effectively and accountably”.
The agreement comes as the United States restructures its foreign assistance strategy under President Donald Trump’s administration, which has significantly reduced funding to numerous low- and middle-income countries following a broad review of global programmes.
For decades, the US Agency for International Development (USAID) was the primary vehicle for American health funding abroad, supporting programmes targeting HIV/AIDS, malaria, maternal and child health, nutrition and epidemic response.
Much of that funding was channelled through international NGOs and contractors operating in developing nations.
The reorganisation of US foreign assistance has led to widespread funding freezes and programme closures in several countries, disrupting health services and forcing governments to seek alternative financing to maintain critical care.
Kenya’s new agreement stands out as a rare expansion of US financial support — and a strategic endorsement of Nairobi’s institutions.
Rubio said Kenya had been chosen because of the strength and stability of its governance and health systems, as well as its capacity to manage public funds transparently.
He said the United States would now prioritise working directly with partner governments rather than funding what he called an “aid industrial complex” that often absorbed resources without building sustainable local systems.
Beyond healthcare, Rubio also praised Kenya’s leadership in supporting stability efforts in Haiti, saying Nairobi’s role had been critical in establishing an international mission to curb gang violence.
Ruto confirmed Kenya would continue backing the multinational force and urged other countries to contribute resources and personnel, saying collective action was essential to restoring order in the Caribbean nation.
The deal also builds on a long-standing health partnership between the two countries that has, over more than two decades, funded disease control, medical training and the strengthening of Kenya’s health infrastructure.
gandae@businessdayafrica.org