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Mr Yousaf said: “To be clear, the Scottish government gave money to Gaza, like virtually every government in the West, because of the unarguable humanitarian catastrophe that has unfolded there.”
UNRWA has since been at the centre of controversy surrounding Israeli accusations that members of its staff were involved in the 7 October attacks by Hamas that triggered the fighting.
Several countries, including the UK, have announced a pause in support for the relief agency while an investigation takes place after the allegations emerged in January.
However, those accusations only became known several weeks after the Scottish government funding announcement had been made.
Stephen Kerr had claimed to the Telegraph that the funding decision suggested the first minister was “prepared to bend the rules”.
He also said there was a “clear conflict of interest” in aid money being provided to UNRWA.
Mr Kerr later told BBC Scotland News that it was a “a matter of scrutiny”.
He said: “The key problem is there were decisions made, there was official advice given by both ministers and officials and at the last minute the first minister, through one email, reversed all those decisions.”
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