US cancels Ksh430m aviation contract for Kenya
US cancels Ksh430m aviation contract for Kenya
The US Department of Government Efficiency (DOGE) has announced the cancellation of a contract for the US State Department that was being undertaken in Kenya.
In a statement by the unit led by Elon Musk on Thursday, April 3, the contract was meant for aviation advisors in Kenya.
According to DOGE, the contract was worth USD3.4 million( around Ksh430 million using the current exchange rate).
It was explained that the cancellation was part of the reforms being undertaken by the unit which was appointed to cut down wasteful expenditures of the US government.
“Agencies cancelled 47 wasteful contracts today with $87.5M ceiling value and $30.2M in savings, including a $3.4M for the US State Department management consulting contract for aviation advisors in Kenya,” read the statement in part.
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This is not the first time the unit has cancelled a contract for Kenya. On February 27, the unit also announced the cancellation of a USD79 million (Ksh10.2 billion) funding for Kenya.
The money was to support the primary literacy programme in Kenya.
On the other hand, the President Donald Trump administration also froze USAID and ordered a review of the programmes that were being funded.
As a result, Treasury CS John Mbadi indicated that the move had created a Ksh52 billion deficit for the programmes that were to be implemented in the country.
“With the affected state departments, we are reviewing our budgetary allocations to prioritise funding for sectors such as health and food security. If this funding stops abruptly, we cannot wait until the 2025/2026 budget,” the CS stated.
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