USAID Funding Freeze Leads to Retrenchments in Kenya’s Health Sector, Threatening Critical HIV Programs
Retrenchments Loom as USAID Cuts Health Funding in Kenya
Kiambu, Kenya – February 11, 2025 – Kenya’s healthcare sector faces a looming crisis as a freeze on U.S. foreign aid, announced by the U.S. Agency for International Development (USAID), triggers widespread retrenchments among healthcare workers. The funding suspension has left thousands of professionals in the sector facing an uncertain future, while critical health programs, particularly those addressing HIV prevention and treatment, are at risk of collapse.
The freeze, initiated by USAID, follows an executive order issued by U.S. President Donald Trump in January 2025, titled “Reevaluating and Realigning United States Foreign Aid.” The order paused all U.S. foreign development assistance programs for 90 days to allow for a comprehensive review. As a result, key health initiatives, including HIV and AIDS, malaria, and other critical disease programs, have been suspended, leaving many healthcare workers without jobs.
Mary Muthoni, an HIV testing and counseling provider at Kangemi Health Centre, has been supporting patients in need for five years. However, she now finds herself among the many healthcare workers at risk of losing her job. “Over 20 of my colleagues have already been retrenched in the past week, and we have received no clear communication about what happens next,” she said.
Similar layoffs have been reported at other health facilities in Kiambu County, including Akshar Health and Life Care Hospital, where clinicians, pharmacy technicians, and HIV service providers have been affected.
The freeze follows a broader suspension of U.S. foreign aid funding, which includes a freeze on support for the President’s Emergency Plan for AIDS Relief (PEPFAR), a key initiative providing HIV treatment and care. The freeze has also impacted other essential health programs, placing thousands of healthcare workers on forced unpaid leave or retrenching them altogether.
Dr. Ruth Laibon, CEO of the National Syndemic Diseases Control Council (NSDCC), emphasized the vital role USAID has played in Kenya’s health system for over 60 years. “PEPFAR alone employs approximately 41,500 healthcare workers in Kenya, many of whom are now facing layoffs,” she said in a recent interview.
As the retrenchments take effect, health services are already being severely affected. Programs that offer HIV counseling and testing, antiretroviral therapy (ART), and maternal health support have been scaled back or halted altogether. This disruption has raised concerns among patients who rely on these services for their well-being.
To mitigate the impact of the freeze, the U.S. government issued a 90-day waiver, allowing some life-saving humanitarian assistance to continue. This includes the supply of essential medical equipment, such as HIV test kits, laboratory tools, and antiretroviral drugs. However, this waiver provides only temporary relief, and health experts warn that the long-term future of health services in Kenya remains uncertain.
Kenya, which is the fifth-largest health beneficiary of USAID, has received over Sh1.26 trillion in U.S. health aid between 2001 and 2024. The sudden disruption to this funding has left health workers in limbo, with little hope for the future.
In response to the crisis, Kenyan officials are exploring alternative funding mechanisms to sustain vital health programs. Finance Cabinet Secretary John Mbadi has stressed the need for Kenya to find domestic solutions to fund its health sector should U.S. aid continue to decline.
“We must find ways to sustain these crucial services through local funding,” Mbadi stated.
For now, as the uncertainty continues, the future of Kenya’s healthcare system hangs in the balance. Healthcare workers and patients alike are left wondering what lies ahead in the face of potentially permanent cuts to foreign aid.
Dr. Salome Kimani, a healthcare provider at Gikambura Hospital in Kikuyu, summed up the sentiment across the nation: “Our future remains a mystery. We have received no official communication about when—or if—we will return to work. Healthcare providers across the country are deeply concerned, but it is the patients who will suffer the most.”
As Kenya seeks ways to weather the storm, the full impact of the USAID funding freeze remains to be seen, with healthcare workers and millions of Kenyans facing an uncertain future.
USAID Funding Freeze Leads to Retrenchments in Kenya’s Health Sector, Threatening Critical HIV Programs