91997E2913

WRITTEN QUESTION P-2913/97 by Graham Watson (ELDR) to the Commission (5 September 1997)

Subject: EU aid to Kenya

Following the brutal clamp-down on pro-democracy demonstrators in June 1997 which resulted in 14 deaths in Nairobi, violence has spread throughout Kenya. Evidence suggests the troubles are being orchestrated by forces loyal to President Moi in an attempt to divide opposition parties in the run-up to elections later this year. Further concerns have been expressed about the misuse of treasury funds and corruption within the governing KANU party. In protest the IMF suspended the second installment of a loan to Kenya worth in total some $468 million. Latest troubles on the coast resulting in 42 deaths stem from the destruction of forests sacred to the Mijikenda tribe initiated by President Moi's supporters.

Will the Commission now reconsider suspending financial aid in the run-up to elections as an expression of concern about the turbulent political climate engulfing Kenya?

Answer given by Mr Pinheiro on behalf of the Commission (19 September 1997)

The Commission shares the concern of the Honourable Member about the deteriorating situation in Kenya and in close co-ordination with the Member States is actively pursuing all opportunities to emphasise to the Kenyan government the importance the Commission attaches to the fact that development policy and co-operation are closely linked to respect for fundamental human rights and to the recognition and application of democratic principles, the consolidation of the rule of law and good governance (Article 5 of the Lomé Convention).

Several Union declarations have been made, the last in August, urging all parties concerned to refrain from all acts of violence and to resort to peaceful means in seeking to resolve political differences, and emphasising the need to initiate a serious dialogue as the only means of achieving a peaceful solution beneficial to all Kenyans.

If the Commission considers that Kenya has failed to fulfil an obligation in respect of one of the essential elements in Article 5 (the preparation and holding of free and fair elections are of decisive importance in this context), this may lead the Commission to propose opening consultations with Kenya in accordance with the provisions of Article 366(a) of the Convention. Suspension of aid is considered to be a measure of last resort.

As far as balance of payments support is concerned, the International monetary fund (IMF) decided on 31 July 1997 to suspend the disbursement of the second tranche 33.8 MECU (37 million $) of its programme for Kenya. The main reason for this decision was that the IMF was dissatisfied with measures taken by the Kenyan government to tackle corruption and fraud. An IMF mission (25-29 August 1997) agreed with the Kenyan government measures required to restore IMF aid, but no date was set when the two parties would resume aid negotiations. The Commission's structural adjustment programme with Kenya is suspended since 1991 and will only be resumed once the necessary economic and non-economic conditions are in place.