§ Sir R. Robinsonasked the Secretary of State for the Colonies what further budgetary assistance he proposes to make available to the Government of Kenya in 1962–63.
§ Mr. MaudlingA sum of £2.5 million has been included in the estimate of the 27W Colonial Grants and Loans Vote, Class 11.8 (H.C., 118 of 1961–62) as a grant-in-aid of the expenses of administration. Since the budgetary forecasts on which the provision was based, I have impressed on the Kenya Government the seriousness of their financial position and the need to make strenuous efforts to bring the budget into balance as soon as possible. As a result, I expect the grant-in-aid needed in Kenya's financial year 1962–63 to be substantially lower than the Vote provision.
However, Her Majesty's Government have agreed to make available further assistance towards famine and flood relief measures. This additional aid comprises a grant-in-aid of £750,000 and a loan of £250,000 towards the cost of agricultural rehabilitation measures recommended by the committee appointed by the Government of Kenya under the chairmanship of Lord Delamere; and a grant-in-aid of £203,840 towards general famine and flood relief measures. A Supplementary Estimate in respect of this additional assistance will be presented to parliament at the earliest opportunity and in the event of any payment being required in the meantime the necessary funds will be issued from the Civil Contingencies Fund.
Her Majesty's Government have also agreed to extend by one year the grace period on repayment of the interest free loans made to the Government of Kenya towards the cost of the emergency.