Weeks after US President Donald Trump signed an executive order suspending US foreign aid for 90 days, it has now emerged that his administration will shut down USAID completely. This decision has begun eliciting fears, that China will swoop in to cement its influence in Africa.
The decision to suspend the aid has already rendered hundreds of Kenyans jobless and others risk layoffs. The US Agency for International Development (USAID), is the new face of contention in the US capital Washington, after tech billionaire Elon Musk revealed plans to shut it down.
“We’re shutting it down,” Musk said during an X Spaces, He added, “Spent the weekend feeding USAID into the wood chipper.”
However, fears have now emerged that China could take over the loopholes left from the aid that spent about Ksh66 billion in Kenya alone last year. One of the leaders who have expressed the concerns is New Jersey Senator Andy Kim.
USAID officials attending a meeting during the 2018 Annual Meeting aimed at Monitoring and Evaluation session
Photo
USAID
Kim told Bloomberg on Monday, February 3, “Trump’s actions are weakening American global leadership and influence.”
He added, “Our assistance abroad helps fight disease and stop starvation and famine, but it’s also a tool to stave off the expansionist reach of authoritarian leaders in China, Russia, and Iran.”
Some Chinese officials see Washington’s retreat from foreign aid as a strategic misstep. One official described the US pullback as “self-sabotage,” warning that it risks isolating Washington from potential allies.
China has been making an effort to improve its influence in Africa, establishing a new foreign aid agency in 2018. The Asian giant is Kenya’s largest multilateral lender with loans over Ksh1 trillion of Kenya’s Ksh10 trillion debt.
Even before the aid halt, China had been positioning itself as a champion of the developing world, aiming to counterbalance US trade policies and expand its economic influence.
At last year’s Group of 20 summit in Brazil, Beijing outlined a series of initiatives to strengthen ties with the Global South. The proposals included boosting technological connectivity, improving food security, and tackling climate change—areas China sees as key to fostering deeper partnerships.
Trump’s executive order, which halted humanitarian assistance to most third-world countries, caused unexpected disruptions. Kisii County was forced to send more than 500 workers on compulsory leave, and Kisumu and Homa Bay counties halted projects funded by USAID.
Similarly, Kenyans employed by the USAID were also sent on a mandatory leave for 90 days and are likely to now lose their jobs.
A similar situation was witnessed at the University of Nairobi (UoN), where an unknown number of Kenyan employees working with the USAID were sent on unpaid leave.
A photo collage of United States President Donald Trump (left), President William Ruto (centre) and China President Xi Jinping.
PCS
Britannica