U.S. Cuts WTO, ILO Funding in Foreign Aid Shake-Up, Raising Kenyan Concerns

Nairobi, Kenya — 2025-09-05 22:00 EAT. The U.S. government under President Donald Trump has eliminated funding for the World Trade Organization (WTO) and International Labour Organization (ILO) in sweeping foreign aid cuts, sparking concern in Kenya over potential economic and labor impacts.

The Latest

The White House confirmed ~Ksh633B (US$4.9B) in foreign aid reductions on September 4. WTO and ILO funding—previously earmarked for Geneva-based institutions—was zeroed out entirely. Status: confirmed; no Kenyan government statement yet.

Context in Brief

• Kenya & WTO: Member since 1995; relies on WTO for trade rules and dispute resolution protecting exports like tea, coffee, and flowers.

• Kenya & ILO: Partners on labor standards, job creation, worker rights programs; ILO technical assistance may shrink without U.S. funds.

• Policy Shift: Part of Trump administration’s “America First” fiscal agenda cutting foreign commitments.

Law, Policy, and Process

• U.S. Mechanism: Foreign aid budget passed by Congress; allocations revised by executive memo.

• Global Governance: WTO agreements under Marrakesh Treaty; ILO Conventions guide labor reforms in member states.

• Next Steps: Other member states or multilateral donors may bridge funding gap.

Voices and Stakeholders

• Trade analysts: “Any weakening of the WTO risks global trade stability—Kenya is directly exposed,” Nairobi economist, 2025-09-05.

• Labor unions: Warn of slowed progress on Kenya’s employment standards without ILO technical help.

• U.S. administration: Argues cuts are fiscally necessary to curb “unproductive” spending abroad.

Evidence & Data

• Figures: Ksh3.7B (WTO), Ksh13.8B (ILO) annual U.S. contributions cut.

• Budget source: U.S. State Department foreign assistance tables, Sept 2025 update.

• Kenyan exports: Tea, coffee, floriculture ~20% of foreign exchange earnings (2024 CBK data).

Risks and Implications

• Trade: Fewer WTO dispute resolution resources could delay cases affecting Kenyan exporters.

• Labor: Reduced ILO funding may hinder worker protections, job programs.

• Diplomacy: U.S. disengagement may push Kenya closer to AfCFTA, EU, or China-backed initiatives.

What We Don’t Know

• Whether EU or Asian economies will offset U.S. cuts.

• If Kenya will lobby WTO/ILO for Africa-priority funding reallocations.

• Long-term U.S. foreign aid strategy under current administration.

Timeline

• 2025-09-04: U.S. confirms foreign aid cuts.

• 2025-09-05: Kenyan experts raise concerns; ministries monitor impact.

• 2025-09-10: WTO, ILO boards to discuss budget revisions.

What to Watch

• WTO/ILO operational changes post-U.S. withdrawal.

• Kenyan Ministry of Trade, Ministry of Labor official statements.

• Donor coordination via AfCFTA or AU to fill funding gaps.