Thirty Kenyan firms are at risk of closing after President Donald Trump’s orders to shut down the United States Agency for International Development (USAID).

These companies are among the beneficiaries of USAID’s Development Innovative Ventures (DIV). In the past ten years, DIV has invested over Sh12.9 billion into Kenyan entrepreneurs to promote innovations in Agriculture, renewable energy and healthcare.

Kenya’s promising venture ‘Silicon Savannah’, hailed as one of Africa’s top start-up centres, has been left scrambling for alternatives as DIV cuts off funding.

The country received around $638 million in venture capital funding in 2024 and more than 30 Kenyan startups have benefited from USAID grants, receiving between $500,000 – $6 million to expand their operations.

USAID DIV Beneficiaries

Pula Advisors, a Kenya-based insure-tech company that offers insurance to Small-scale farmers, was awarded a $1.5 million USAID grant in 2023 to widen its insurance portfolio to include Small-scale farmers in Zambia and Kenya.

BasiGo, an electric bus company, received $1.5 million from USAID to expand its operations into Rwanda, while SolarGen Technologies was granted $2.5 million to develop solar-powered water purification systems.

Additionally, in January 2023, USAID’s DIV granted Sanergy $100,000 to develop and expand innovative sanitation solutions in urban areas. Maisha Meds was awarded $5.25 million to create a platform for the distribution of medical supplies.

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These companies have utilized these funds to grow their operations beyond Kenya’s borders.

There is a growing concern regarding the potential shutdown of the International Development Finance Corporation (DFC), which has been providing grants and loans to African Startups such as Ilara Health which received $1 million to enhance its diagnostic platform.

With the decline in financial support, many early-stage African startups may be hindered from growth or forced to shut down before proving their business model.

On January 20, Trump signed an executive order suspending all foreign development assistance for 90 days.

He stated that the US foreign aid industry and its bureaucracy do not align with American interests and often conflict with American values.

As a result, on January 24, the US State Department issued a directive to reduce all aid, which could lead to the termination of grants that are for essential such startups.