Amid growing corruption allegations against the Kenyan government, the European Union has postponed a decision on whether to give Kenya new grants, EU and Kenyan officials said on Wednesday.
The EU delayed its decision because it wants clarification on some issues, Cabinet secretary Francis Muthaura said, without elaborating.
”This is a postponement of a decision of the EU” to make new grants to Kenya, Muthaura told journalists.
”This is a normal process you find in discussions” between Kenya and its creditors, he said.
A European Commission spokesperson in Kenya confirmed that the head of the EU delegation, Gary Quince, met with President Mwai Kibaki to discuss ”the governance situation in Kenya and the EC budget support programme”.
The commission has deferred until September or October a decision on a €125-million grant to help Kenya bridge its Budget deficit over three years, the spokesperson, Wairimu Njuguna, said in an e-mail.
An independent daily, the East African Standard, reported on Wednesday that concerns over corruption led the EU to delay the release of the grant.
In his Budget in June, Finance Minister David Mwiraria said he expected to have a Budget deficit of 57,9-billion shillings ($742,3-million), which he hoped to make up partly by using foreign loans and grants.
The EU delay follows stinging comments by British High Commissioner Edward Clay on July 13 that a resurgence of corruption in Kibaki’s administration was making Kenya’s creditors rethink giving it new loans and grants.
Njuguna said that there has been no ”freezing of EU aid. All programmes financed by the EU are continuing as normal.” — Sapa-AP