Aid (Hansard, 3 June 1964)

§ Mr. Sandys

As a result of discussions which concluded in Nairobi today, the British Government have agreed to provide the Kenya Government with substantial aid for civil and defence purposes. This will take the form partly of gifts of money, equipment and buildings and partly of long-term loans.

On the civil side we are providing about £7 million for capital development; this includes £4.3 million of the balance of loans and grants outstanding at independence and £3 million in Kenya's financial year 1964–65. We are also giving just over £1 million for budgetary assistance.

The Kenya Government are in the course of carrying out an extensive land settlement programme which is largely financed by Britain. We shall be providing over £11 million in the period up to June, 1968, to complete the existing schemes. In addition, we shall make a loan of £1 million for the Kenya Land Bank and Agricultural Finance Corporation to finance further land transactions in 1964–65. We are also considering further proposals by the Kenya Government for financial assistance in dealing with the problem of mixed farming areas.

We shall continue to provide part of the emoluments of British officials serving the Government of Kenya. This and other related obligations are now costing about £3 million a year.

We are also providing loans of £13½ million to help Kenya meet its 177W obligations for compensation and pensions of retired expatriate officials.

We have already undertaken to contribute towards the capital cost of the University of East Africa and we shall be providing other forms of educational and technical assistance.

As part of the settlement we have cancelled certain loans totalling about £6 million which were made to the Kenya Government in the years before independence.

We are giving to the Kenya Government about £3.5 million worth of arms, equipment, vehicles and aircraft to help in the expansion and modernisation of their forces. We are also providing British Army and R.A.F. personnel to assist in military training and we shall make available to the Kenya Services facilities at training courses in Britain.

British military property and fixed assets in Kenya and the British interest in assets owned jointly by Britain, Tanganyika, Uganda and Kenya will be transferred without cost to the Kenya Government as and when they are no longer needed by us. These assets, which include the modern barracks at Kahawa, are valued at over £6 million.

In accordance with arrangements agreed with the Kenya Government in June, 1963, British forces are being progressively withdrawn from Kenya. With the exception of a few administrative and technical elements, all our troops will have left before the end of the year. Meanwhile, they will continue to provide without charge a measure of support to the Kenya Army, including air transport.

Thereafter the Kenya Government have agreed that units of the British forces may return to Kenya from time to time for training and to carry out joint exercises with the Kenya forces. The Kenya Government have also agreed that the Royal Air Force may continue to overfly Kenya and stage at airports. The R.A.F. will also be permitted to continue to use certain signals facilities in Kenya until the end of 1966, by which time alternative arrangements will have been made elsewhere. It has been arranged that ships of the Royal Navy shall continue to visit Mombasa for self-maintenance and a small British naval establishment will 178W for the time being be maintained ashore. A British naval officer has been made available to the Kenya Government to advise on the formation of a Kenya Navy.

The House will be asked in due course to vote the necessary Supplementary Estimates. In the meantime advances will be sought from the Civil Contingencies Fund.

I am sure the House will welcome these arrangements for mutual assistance between Britain and Kenya and the spirit of practical co-operation between Commonwealth partners which has inspired them.