By Benadeta Mwaura - Reporter
Kenya, 24 November 2025 - A fresh wave of uncertainty has swept through Kenya’s development landscape after reports emerged that the United States has cancelled the KSh 7 billion Millennium Challenge Corporation (MCC) urban mobility grant, a programme signed under the Ruto–Biden era.
Yet as more information comes to light, conflicting accounts from the U.S., Kenyan authorities, and development stakeholders suggest the picture is far more complicated than an outright termination.
At the centre of this unfolding story is one pressing question:
Has the MCC Kenya Urban Mobility Threshold Programme truly been axed, or is the situation more nuanced?
What We Know So Far and What Remains Unclear
Kenya’s Treasury had received a termination notice regarding the $60 million (KSh 7.76 billion) MCC grant aimed at improving Nairobi’s urban mobility, non-motorised transport network, low-emission buses, and key city planning systems.
But a deeper probe reveals conflicting realities. MCC’s own 2023 and 2024 annual reports still list the Kenya programme as active and running until May 2028.
Moreover, there has been no public termination announcement from MCC, the U.S. State Department, or any official U.S. government source.
The Treasury reference appears linked to the threshold programme framework, which may not necessarily reflect the entire pipeline of mobility-related projects.
This discrepancy points to a likely scenario where the termination may involve only part of the programme, or it may reflect an administrative issue not yet updated in the official MCC documentation.
At this stage, the evidence does not support a definitive conclusion that the entire grant has been cancelled.
A Wider Pattern of American Aid Contraction Under Trump
Regardless of the ambiguity around this specific grant, the broader context is unmistakable: the United States under Trump is withdrawing development support at an unprecedented pace, and Kenya has been among the hardest-hit countries.
Recent government data shows that more than KSh 108 billion in USAID contracts have already been cut or suspended.
Treasury Cabinet Secretary John Mbadi has confirmed that up to 85 U.S.-funded programmes operating in Kenya have been halted. This contraction has triggered shutdowns across the development sector, with implementing partners reporting layoffs, frozen budgets, and cancelled community projects.
Some insiders warn that the total number of U.S.-supported programmes in Kenya may drop from about 100 to as few as 15 if the cuts continue.
The sentiment online reflects deep concern. Online, one user employed by a USAID-funded group wrote that the cuts were devastating entire sectors and leaving many local workers without certainty.
Another expressed fears that the poorest communities, not officials, would bear the brunt of the aid withdrawal. This is the backdrop against which the MCC controversy has emerged.
Why Kenya Could Be on the Losing End
If the MCC urban mobility initiative is indeed frozen or cancelled, the consequences for Kenya could be significant.
Many of Nairobi’s emerging urban mobility reforms, including non-motorised transport infrastructure and climate-friendly bus initiatives, rely heavily on the planning and systems support embedded in the programme.
More from Kenya
Without the grant, these projects may slow or stall, pushing the government to seek alternative financing from partners such as China, the European Union, or costly private lenders.
The uncertainty also strains diplomatic relations. After the ongoing USAID cuts, a collapse of the MCC programme would reinforce the perception that American development cooperation has become unpredictable under the new administration.
This risk comes at a sensitive time politically, with Kenya gearing up for the next election cycle. The perception that the Ruto government is losing U.S. support could be weaponised by political opponents.
So… Was the Deal Truly Terminated?
At this point, the available evidence paints a contradictory picture. Kenya’s Treasury insists that a termination notice has been issued.
Meanwhile, MCC documentation still indicates the programme is active, with no update signalling cancellation.
The U.S. government has not released any public statement confirming or denying the move.
No major international news outlets, including Reuters, AP, or VOA, have reported the cancellation.
Public discussion online points to widespread disruption across U.S.-funded projects but does not mention a confirmed MCC termination.
This suggests several possibilities. It may be that only part of the threshold programme is affected.
Alternatively, the termination notice may have been communicated privately and is yet to be reflected in MCC’s official reporting cycle.
There is also the chance that Kenya misinterpreted a restructuring document tied to programme administration.
Until there is an official confirmation from either MCC or the U.S. Embassy, the status of the programme remains unclear.
What Happens Next
Kenya will now require clear and direct communication from both MCC and the U.S. Embassy to avoid speculation and uncertainty.
The government may also need to reassess ongoing urban mobility initiatives reliant on external funding and explore contingency financing in case the grant is indeed withdrawn.
More broadly, Kenya must consider how it approaches development partnerships as the reliability of U.S. funding comes under question. It will also need to plan how to safeguard Nairobi’s long-term mobility goals in the absence of guaranteed external support.
Meanwhile, many Kenyan workers in the NGO and development sector remain anxious as projects shrink and donor confidence shifts. One Kenyan Social Media user put it simply, and perhaps best:
“These cuts don’t hit politicians. They hit project workers, communities, and the people who depended on these services.”
