U.S. government cancels multimillion contracts in Kenya
Kenya among countries affected as U.S. government cancels 401 contracts worth $2.1 billion.
Kenya among countries affected as U.S. government cancels 401 contracts worth $2.1 billion.
The United States Government has cancelled two contracts linked to Kenya, with a combined value of more than Ksh43 million.
This move is part of a broader effort by U.S. federal agencies to reduce what they are calling “wasteful” spending.
In a statement released by the Department of Government Agency (DOGE) on Friday, 2 May, the agencies explained that they are reviewing and cancelling contracts they consider unnecessary with the aim of saving public money and improving government efficiency.
DOGE is an initiative launched during the second Trump administration, aimed at reducing federal spending and modernising government operations. It was formalised through an executive order on January 20, 2025.
According to a recent contract update, federal agencies have cancelled a total of 401 contracts over the past two days.
These contracts had a total ceiling value of Ksh 273 billion ($2.1 billion), and the cancellations are expected to result in savings of around Ksh 79.7 billion ($613 million).
Among the cancelled agreements are two contracts involving Kenya. One was a Ksh 35.9 million ($276,000) contract from the U.S. Treasury Department for a Kenya programme coordinator.
The other was worth Ksh 29.6 million ($228,000), also from the Treasury, for Kenya, Uganda, Namibia, and Tanzania cruiser vehicles.
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The update does not provide details on how the cancellation of these contracts will affect programmes or individuals in Kenya but simply lists them as examples of spending cuts.
Other cancelled contracts include a Ksh 3.1 million ($24,000) Department of Homeland Security (DHS) contract for two-day training on equal opportunity in employment, a Ksh 1.95 million ($15,000) DHS contract for Out and Equal workplace advocates, and a Ksh 767 million ($5.9 million) Department of Commerce (DoC) contract for environmental consulting support services.
“Contract update! Over the last two days, agencies terminated 401 wasteful contracts with a ceiling value of $2.1B and savings of $613M, including a $276k Treasury contract for a ‘Kenya program coordinator’,
A $228k Treasury contract for ‘Kenya, Uganda, Namibia and Tanzania cruiser vehicles’, a $24k DHS contract for ‘two day training on equal opportunity in employment’, a $15k DHS contract for ‘Out and Equal workplace advocates’, and a $5.9M DoC contract for ‘environmental consulting support services’,” the update stated.
As a result of these cancellations, the projects, roles or purchases they were intended to support will no longer go forward under the terminated agreements.
The U.S. government says this is part of ongoing efforts to reduce spending and improve how taxpayer money is used.
This comes days after the United States African Development Foundation (USADF) on April 8, terminated grants worth over Ksh 6.7 billion (around $51 million) across several African countries, including a project in Kenya.
DOGE, on April 8, confirmed that the Kenyan grant worth about KSh 6.3 million ($48,406) was cancelled by the USADF.
The terminated Ksh 6.3 million was intended to help develop a WhatsApp chatbot to support local businesses in marketing their products.
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