§ Captain Kerbyasked the Secretary of State for the Colonies if he is aware that Kenya has become a net exporter of capital instead of an importer, and that the Kenya Government is unable to provide direct employment to counter increasing unemployment because of the growing shortage of capital; and what action he proposes to take to remedy this situation.
§ Mr. Iain MacleodSo far as private capital is concerned I am sure that the vital need is that in Kenya the leaders of all races should co-operate in the creation of an atmosphere which is attractive to investors. I am of course aware of the present financial difficulties of the Kenya Government. Her Majesty's Government are prepared, if necessary, to afford further assistance and I am at present examining the position.
§ Captain Kerbyasked the Secretary of State for the Colonies, in view of the growing deterioration in the financial position of Kenya, the fall in public revenue and the withdrawal of capital from the colony, what cuts he proposes in Kenya's development plans for 1961 and 1962.
§ Mr. Iain MacleodIt is of course always necessary for colonial Governments to take their development programmes constantly under review in the light of changing financial circumstances. I can however assure my hon. Friend that, in my examination of the question whether further financial assistance from Her Majesty's Government is necessary I shall take into account the Kenya Government's essential needs for development as well as for current expenditure.