§ Mr. George Cunninghamasked the Secretary of State for Foreign and Commonwealth Affairs what commitments of aid to Kenya have been undertaken for the period after 31st March, 1971; on what terms; and for what projects or programmes.
§ Mr. WoodAs I told my hon. Friend, the Member for Haltemprice (Mr. Wall) on 26th March, the British Government, under an agreement signed in Nairobi on 17th March, are providing the Government of Kenya with further capital aid valued at £11.5 million. £2.75 million will be in the form of a grant, and the other £8.75 million will be a 25-year loan at an interest rate of 2 per cent. with a grace period of repayment of capital for seven years.
It is expected that disbursements from this loan will be spread over four years. £7.75 million will be used for various development purposes, including land consolidation and rural development; £3.75 million will be available for the purchase of British-owned farms. Allocations will be made from time to time for projects and programmes agreed between the two Governments. Since 31st March, £2.9 million has been allocated for the purchase of British machinery and equipment for a sugar factory.—[Vol. 814, c. 226.]