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A historic government-to-government agreement pivots funding away from NGOs, directly targeting Kenya’s universal health coverage goals in a major shift in American foreign aid policy

Kenya has secured a monumental $1.6 billion (approx. KES 208 billion) health investment from the United States in a historic direct-funding deal. The five-year framework marks a significant pivot in US foreign aid, channeling funds straight to Kenyan government institutions instead of through traditional non-governmental organization (NGO) intermediaries.
The agreement, signed in Washington D.C. and witnessed by President William Ruto, makes Kenya the first African nation to enter into such a pact. This strategic shift is designed to bolster President Ruto’s ambitious Universal Health Coverage (UHC) agenda by directly supporting the newly formed Social Health Authority (SHA) and other national health bodies.
For decades, US health aid has been largely administered by agencies like USAID and implemented by NGOs. This new framework eliminates third-party involvement, a move the US government argues will cut overheads, increase efficiency, and ensure aid directly serves national priorities. The agreement is the first of its kind under a new 'America First' global health strategy that emphasizes government-to-government partnerships.
Prime Cabinet Secretary Musalia Mudavadi, who signed the framework with US Secretary of State Marco Rubio, noted the deal would be transformative for the country's health system. Under the terms, Kenya is also expected to gradually increase its domestic health spending, taking over costs for health commodities and personnel from the US by 2031.
The infusion of funds is set to accelerate Kenya's transition from the old NHIF system to the comprehensive Social Health Authority. President Ruto emphasized that the resources will be targeted at several key areas critical for the success of UHC.
President Ruto hailed the agreement as a vote of confidence in Kenya's health reforms. "The framework we sign today adds momentum to my administration’s universal health coverage... leaving no Kenyan behind," he stated.
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