Kenya (Hansard, 25 October 2000)

§ 3. Mr. Richard Allan (Sheffield, Hallam)
What projects on good governance her Department is supporting in Kenya. [132183]

§ The Secretary of State for International Development (Clare Short)
High levels of corruption and poor economic management have caused enormous damage to the economy and people of Kenya. The UK, along with all other development agencies, has made it clear over the past three years that support to Kenya would be conditional on firm action on corruption. A strong package has been negotiated with the IMF, which we support. We are now at the beginning of a difficult reform process in Kenya, which will require sustained Kenyan and international support.

§ Mr. Allan
I am grateful for that answer, but the Secretary of State will be aware that concerns are increasing over political stability in Kenya, with daily rumours about early elections and whether President Moi will stand down as required by the constitution. Two separate constitutional review processes are in competition. In that context, will the Minister consider increasing direct support from her Department to good government initiatives in Kenya, so that we see a successful election process? Small investment in such initiatives now may avoid the huge economic, social and human costs of further instability in east Africa, which would be caused by a flawed election process in Kenya.

§ Clare Short
The hon. Gentleman is absolutely right. The situation is fragile. On top of the history of corruption, poor economic management and growing poverty, there is a very serious and terrible drought in Kenya, which is having bad consequences, so we should all worry for the future stability of that country. We are already providing assistance to try to ensure that there are fair and proper elections. We will do all that we can to ensure that that happens.

§ Mr. Tom Cox (Tooting)
My right hon. Friend is highly regarded in Kenya for her on-going commitment. What discussions is her Department having with Richard 208 Leakey in view of his commitment to change the long-standing political system in Kenya? Will she always bear it in mind that it is ordinary men, women and their families in Kenya who suffer enormously in terms of education and employment opportunities and health care? Whenever we talk about loans from either the IMF or World Bank, it is ordinary people who, sadly, suffer.

§ Clare Short
My hon. Friend is absolutely right. That is why one must constantly make difficult judgments. There is no such thing as a perfect Government, even in the UK. Therefore, one is always trying to offer assistance and support for reform to improve the life of ordinary people, working with whatever Governments one can find. He is also right that President Moi's decision to appoint Richard Leakey and his team to take over the leadership of the reform process in Kenya represents a big commitment to change, reform and to tackle corruption. That has led us to back a new IMF and World Bank package, which we hope will focus on improving the lives of ordinary people, which are getting worse because of the drought.

§ Mr. Gary Streeter (South-West Devon)
Does not the Secretary of State share my concern about reports in The Eastafrican newspaper on 5 October that the Kenyan drive against corruption lost steam the very second that the IMF endorsed its $198 million aid package, causing many diplomatic sources to comment that the Kenyan Government were simply out to hoodwink donors? Given that Britain has just increased bilateral aid to Kenya, is she confident that our aid is not simply propping up a Government who have no real intention to reform? Is it not time to make it crystal clear that British aid to Kenya and all other Governments will in future be more closely linked to specific delivery on governance and corruption, and that if they fail to deliver their aid will be stopped and the same amount of money will be pumped through non-governmental organisations and charities in that country, where it has a better chance of reaching those really in need?

§ Clare Short
The hon. Gentleman must learn that one cannot reform Governments who are performing badly by giving aid to NGOs and charities. That happens when one is simply bringing humanitarian relief and cannot lever any reform. That is an important point that the hon. Gentleman needs to learn. Our recent increase in aid to Kenya was £10 million for drought relief because people are going hungry. [Interruption.] If the hon. Member for South-West Devon (Mr. Streeter) did not heckle me, I could answer his question.
I do not agree with the report in The Eastafrican that people have been hoodwinked. This is a sophisticated and complicated IMF programme with many conditions that must be met constantly so that support and help will continue to flow. That remains true of our support in Kenya and elsewhere. We have tightened up on conditionality since our Government took over from the one supported by the hon. Gentleman. I agree that we cannot be confident of success in Kenya. There are many difficulties and many corrupt forces. The economy is in bad shape and the drought is serious. We will have to do all that we can to try to keep the reform process on track, and we will do that.