The purpose of this study was to determine how the financial crisis of 2008 impacted foreign aid inflows to government as well as non-governmental organizations. The study was qualitative in nature and used a research design that is descriptive in nature. The research reviewed recent literature on the determinants of foreign aid allocation to Kenya both bilateral and multilateral aid. Secondary data was collected from World Bank development indicators, surveys conducted by the Kenya government, strategic plans, financial and narrative reports, publications, policy documents and other relevant documents. The target population of the study included the ministry of foreign affairs with the aim of understanding the foreign policy of the various government regimes as well as the ministry of finance. International non-governmental organizations also formed part of the target group to enable us understand the criteria used for their disbursement of foreign aid to Kenya.Based on the findings the study concluded that global financial crisis influenced the foreign aid inflows to Kenya.Unique contribution to theory, practice and policy: Based on the findings the study recommended that governments should invest the foreign aid inflows into broader economic programs such as eradication of poverty and health improvement. This will boost the donors’ confidence that their support is being appreciated by the recipient countries.