§ 77. Mr. Beresford Craddockasked the Secretary of State for the Colonies what further financial help Her Majesty's Government contemplates giving to the Kenya Government towards expenditure arising out of the emergency.
§ Mr. Lennox-BoydIn consultation with my right hon. Friend the Chancellor of the Exchequer and with the Minister for Finance of the Kenya Government, I have now reviewed the Colony's financial prospects for the coming financial year.
On 14th February, 1956, I told the House that for the financial year 1956–57 H.M. Government had undertaken to make available £6 million to the Kenya Government towards expenditure arising out of the emergency. This figure showed a great reduction on that for 1955–56 because of the improvement in the situation.
During the current year that improvement has been steadily maintained and, as a result, it has been necessary for the Kenya Government to draw only £4 million of the 1956–57 assistance.
Nevertheless, despite the steady return of law and order, it is clear that the cost of military, administrative and police expenditure and of rehabilitation for the thousands making their way from detention will continue to be too heavy for Kenya to bear by herself. Present indications show that expenditure arising out of the emergency in 1957–58 will be nearly £4½ million, towards which Kenya will be able to provide nearly £1½ million from her own resources, apart from maintaining existing services and essential development.
Subject, therefore, to the approval of Parliament, H.M. Government will be prepared to provide Kenya with a further grant of £1½ million and an interest-free loan of the same amount for the U.K. financial year 1957–58. As in previous years, this assistance will be called upon only to the extent that it proves necessary.