Airlines, hotels, NGOs and suppliers hit by USAID disruption

President Donald Trump displays one of the executive orders after signing at the Oval Office.[AFP]

Kenyan airlines, hotels, small businesses and suppliers as well as thousands of non-governmental organisations are facing an uncertain economic future as US President Donald Trump administration’s “stop work order” on foreign assistance programmes disrupts operations of numerous international aid organisations.

The far reaching decision has also put into uncertainty livelihoods of thousands of Kenyans who depend on the US Agency for International Development (USAid) for direct employment and lucrative business dealings. 

Issued on January 24th, the shock Trump order halts all foreign aid programmes, including those in Kenya, except for assistance to Israel and Egypt, as well as emergency food aid.

The implications for Kenya are profound, as USAid funds a diverse range of multi-billion shilling initiatives, from healthcare to infrastructure development, according to various interviews by The Standard with those already feeling the impact.

According to its website, USAID has partnered with Kenya for nearly six decades, significantly impacting various sectors of the economy.

Last year, USAID allocated Sh19.2 billion ($149.4 million) to its Kenya programmes, a decrease from Sh32.4 billion ($251.5 million) spent the previous year. 

“USAID has worked closely with the Kenyan government, private sector, and citizens to enhance education access, improve healthcare, stimulate economic growth through trade and agriculture, and strengthen democratic governance,” noted USAID.

“The impact of the USAID cut down of activities already evident,” a Kenyan worker who sought anonymity said yesterday in interview with The Standard. “Many of us employed by international NGOs are now facing uncertainty. Our projects have been abruptly halted, and there’s no clear timeline for resumption.”

The NGO sector has historically been a significant employer in Kenya, providing well-paying positions for skilled professionals. The sudden cessation of USAID funding threatens to destabilise this sector, potentially leading to job losses and economic decline.

Local airlines and hotels are also preparing for the repercussions. Many USAID-funded projects require travel within Kenya, with personnel frequently flying to remote areas like Kisumu and Turkana to oversee initiatives.

Another worker said their booking with a local airline for a work related trip to Northern Kenya was cancelled. “We also cancelled the hotels bookings. The disruption is massive,” she said.

The funding freeze is expected to drastically reduce travel demand, adversely affecting these businesses’ revenue streams. “We’re already witnessing a drop in bookings from international organisations,” stated a hotel manager. 

“The uncertainty surrounding USAID funding is creating a ripple effect throughout the tourism industry,” he added. The Trump administration’s decision has garnered widespread condemnation from global organisations and aid agencies.

Critics argue that the “stop work order” will have devastating effects on vulnerable populations globally, including in Kenya. “This sudden halt in aid programmes is deeply troubling,” remarked an NGO worker who did not wish to be identified.

“It will significantly impact healthcare, education, and other vital sectors in Kenya and across Africa,” she added.