EU to give millions to Kenya
2004-11-27 14:02
Nairobi - The European Union (EU) said on Saturday it had approved a grant of €120m to support Kenya's budget in the next three years on condition the government adopts acceptable economic recovery programmes.
The EU delegation in Kenya said in a statement that the decision to approve the grant was made by European Development Fund Committee in Brussels on Thursday.
"The first instalment of €50m will be released once the government has fulfilled its prior commitments in the areas of poverty-focused budgeting and public financial management," the statement said.
"A further €50m is also available in financial year 2006/07, but €30m of this tranche is linked directly to performance indicators and benchmarks in the achievement of key targets in health, education and public financial management," it added.
For fiscal year 2007/08, the EU will give €20m, the statement added.
But the last tranche could be increased to €45m, "provided the programme has performed well in the first two years", the statement said.
The approval of the whole grant was first slated for July but delayed due to donor concerns that President Mwai Kibaki's government was not doing enough to fight corruption.
"This medium-term programme will be conditional on Kenya remaining on track with the PRGF (Poverty Reduction and Growth Facility) arrangement with the International Monetary Fund," which also called for bold economic reforms, the statement added.