The United States government has launched a sweeping cancellation of federal contracts in just two days as part of a renewed push to eliminate what it calls “wasteful” government spending and improve operational efficiency across agencies. The effort, formalized by an executive order on January 20, 2025, marks a bold implementation of the Department of Government Efficiency (DOGE), an initiative revived during the second Trump administration.
Among the scrapped deals are two contracts tied to Kenya, part of a broader global review targeting billions in public expenditures. One was a Ksh 35.9 million ($276,000) agreement for a Kenya programme coordinator funded by the U.S. Treasury Department. The second, worth Ksh 29.6 million ($228,000), was linked to a vehicle acquisition project spanning Kenya, Uganda, Namibia, and Tanzania.
“Contract update! Over the last two days, agencies terminated 401 wasteful contracts with a ceiling value of $2.1B and savings of $613M, including a $276k Treasury contract for a ‘Kenya program coordinator’,” read a post by DOGE, highlighting the cuts.
The cancellations totaling contracts with a combined ceiling value of Ksh 273 billion ($2.1 billion) are projected to save Ksh 79.7 billion ($613 million) in federal spending. However, the department did not clarify how the cuts might affect program implementation in affected countries, including Kenya.
Other cancelled contracts reflect the range of the review. These include a Ksh 3.1 million ($24,000) training contract on workplace equality, a Ksh 1.95 million ($15,000) agreement with Out and Equal workplace advocates, and a Ksh 767 million ($5.9 million) deal for environmental consulting support through the U.S. Department of Commerce.
The DOGE initiative is designed to centralize oversight of federal contracts and streamline government operations a signature policy of the Trump-era fiscal playbook. While welcomed by U.S. taxpayers seeking government accountability, the cuts are likely to raise questions in partner nations where American-funded programs may face disruption or rollback.
