President William Ruto has suffered a major setback after the United States suspended a Ksh200 billion ($1.6 billion) health cooperation deal with Kenya, dealing a blow to his administration’s ambitious healthcare reform agenda.
The U.S. government announced that the multi-billion-shilling agreement would remain on hold pending a full determination by the High Court of Kenya.
The decision followed a renewed policy stance by U.S. President Donald Trump, whose administration said it could not proceed with implementation while the matter remains before the courts.
Speaking during a press briefing in Nyeri on Thursday, the Chargé d’Affaires at the U.S. Embassy in Nairobi, Susan Burns, clarified that Washington is bound by the court process in Kenya.
She stated that the Trump administration is powerless to move forward with the health cooperation framework until the judiciary issues a final ruling.
“It is up to Kenya to decide how this funding will be used and implemented. For now, the issue is before the court,” Burns said, while assuring that engagement between the two governments remains ongoing.
The agreement, signed on December 4, 2025, by Prime Cabinet Secretary Musalia Mudavadi and U.S. Secretary of State Marco Rubio, was witnessed by President Ruto.
It aimed to strengthen Kenya’s healthcare system through digitisation, emergency preparedness, workforce development, and improved supply chains over five years.
However, the High Court issued conservatory orders suspending the deal after concerns were raised over provisions allowing the transfer and sharing of sensitive health and personal data.
Justice Bahati Mwamuye ruled that the agreement could not be implemented until the legality of those clauses is determined.
Despite the suspension, the U.S. has said it will continue supporting Kenya’s health sector through alternative channels, including ongoing programmes run by U.S. agencies, as the court process unfolds.