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NEWS & CURRENT AFFAIRS

The Nairobian

Development budget to be slashed funds to be directed to essential programs, says Mbadi

National

By Mercy Kahenda | Feb 04, 2025

Finance Cabinet Secretary John Mbadi at the Jeevanjee gardens,Nairobi on Monday February 03,2025 when he held a forum on budget planning for the year 2025/2026 with members of the Bunge la Mwananchi.[Collins Kweyu,Standard]

National Treasury Cabinet Secretary John Mbadi has proposed slashing of the development budget to finance essential programmes affected by United State freeze on foreign aid.

Speaking after attending the mid-term National Assembly retreat in Naivasha, Mbadi said there should be no anxiety and that the country will revert to domestic health financing.

Last month, U.S. President Donald Trump signed the Stop-Work Order, temporarily suspending U.S. foreign assistance programs for 90 days pending reviews to determine if they align with his policies.

In Kenya, Trump’s order will affect thousands on HIV treatment, besides over 25,000 medics and community healthcare workers who will temporarily lose their jobs.

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President Trump’s order will affect over 20 million people—including in Kenya—who are supported by the President’s Emergency Plan for AIDS Relief (PEPFAR) and USAID.

On Monday, Mbadi sought to allay fears and anxiety caused by the decision by the U.S., saying Kenya will bridge the gap left by the withdrawal of the foreign aid, especially in the health sector.

"We will have no alternative but to slash part of the development budget and use the funds to finance critical programs that will be starved of cash if the US stops foreign aid," said Mbadi.

He added, there is no cause for alarm, as I have started to put measures in place to ensure that health programs that depended heavily on foreign aid are not paralysed."

Mbadi noted that the health programs, such as HIV, were critical to saving lives, and the government will provide funding to ensure their continuity.

The CS, however, pointed out that the government was still awaiting official communication from America on the freezing of the foreign aid.

"President Trump took the action immediately after he assumed office, and it is normal for that to happen during a change of regime in any country," added the CS.

Mbadi noted that he was aware that the country depends on donor funding from the US on health and security programs.

He acknowledged that withdrawal of funding would be a big blow to such programs.

The sentiments by the Finance CS come days after the Ministry of Health assured Kenyans of sufficient HIV commodity stocks for six months.

The ministry also said it is actively engaging other development partners, international agencies, and private sector stakeholders for alternative funding and supply of essential medicines to fill in gaps resulting from the Stop-Work Order.

The order was among 78 other executive actions, including US withdrawal from membership in the World Health Organisation (WHO) as part of a broader freeze on nearly all US global health funding.

“We have sufficient stock of HIV commodities, be they antiretrovirals or testing commodities,” said Director General for Health, Dr. Patrick Amoth, at an earlier presser.

Dr. Amoth also appealed to Kenyans on HIV treatment to access medication, saying there is adequate medicine in store and the healthcare workers to provide that service.

In Kenya, the most affected are the over 1.2 million people currently on treatment, 1,952 doctors and clinical officers, 1,234 nurses and midwives, 578 laboratory staff, 340 pharmacists, and 24,577 community healthcare workers.

The order will also affect pregnant women and babies at risk of acquiring HIV through mother-to-child transmission.

According to data from the PEPFAR Monitoring, Evaluation, and Reporting Database (MER), the organisation is currently providing ARV treatment to 679,936 pregnant women living with HIV, both for their health and to prevent transmission to their children.

The Treasury Cabinet Secretary, however, noted that it was important for the country going forward to break the dependency on donor funding for critical programs.