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DE RUEHTC #0986 1231218
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FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 5600
INFO RUEHNR/AMEMBASSY NAIROBI 0402

C O N F I D E N T I A L THE HAGUE 000986 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 05/03/2011 
TAGS: EAID KCOR PREL XW ZF
SUBJECT: NETHERLANDS MAY END DEVELOPMENT ASSISTANCE TO 
KENYAN GOVERNMENT 
 
Classified By: ECONOMIC COUNSELOR RICHARD HUFF. REASONS: 1.4 (B) AND (D 
) 
 
¶1. (C) SUMMARY: The Dutch parliament passed a resolution this 
month mandating an end to direct development assistance to 
the Kenyan government, unless substantial and significant 
progress on corruption is shown.  The Ministry of Foreign 
Affairs told emboffs it will spend the next 5 months (i.e., 
until the September budget deliberations) showing how Kenya 
has made such progress.  GONL development aid to Kenya 
amounts to approximately Euro 5.3 million per year, with 
roughly half going to the government.  End summary. 
 
------------------------------------- 
MFA Opposed Measure to End Assistance 
------------------------------------- 
 
¶2. (C) Emboffs spoke on April 26 with MFA Head of Central and 
East Africa Division Wouter Plomp, who said MFA Development 
Minister van Ardenne (who controls development funds and is 
the lead on Africa policy) had opposed the parliamentary 
measure.  Van Ardenne, who is a strong advocate of increased 
public-private partnership, believed that Kenya was not the 
appropriate country to target for corruption.  Plomp 
elaborated, saying that while Kenya has made only minimal 
improvements in corruption since Moi, the MFA feels that it 
is far less corrupt than many other Africa countries. 
Cutting direct assistance in Kenya could set a precedent for 
other Dutch aid recipients in Africa.  MFA believes that, in 
the African context, a certain amount of direct assistance is 
a necessity. 
 
¶3. (C) According to Plomp, about half the GONL,s assistance 
of Euro 5.3 million to Kenya is provided directly to the GOK. 
 The decision impacts funding beginning in FY 2007, and 
excludes good governance and anti-corruption programs. 
Existing 2006 funding will remain in place, and the MFA will 
reroute money as best it can from the GOK to NGOs and other 
private sector implementing partners.  Some programs 
currently in the pipeline have, however, been halted. 
 
--------------------------------------------- - 
Parliament,s Decision Driven by GOK Corruption 
--------------------------------------------- - 
 
¶4. (C) According to Plomp, the Dutch Parliament was upset by 
a February report from Kenya,s former anti-corruption chief 
John Githongo. Green Left Politician and Second Chamber 
member Farah Karimi initiated the debate, and Labor supported 
the measure. The MFA, Plomp added, argued that the publicity 
the report received and the engagement of civil society on 
the issue demonstrated progress in Kenya.  This argument was 
rejected by parliament.  Comment: The support of Labor is 
noteworthy.  Labor is widely expected to lead a coalition 
government following next year,s elections.  End comment. 
 
--------------------------------------------- - 
MFA to Continue Efforts to Persuade Parliament 
--------------------------------------------- - 
 
¶5. (C) Plomp said his office will spend the next five months 
until the budget debate in September trying to demonstrate 
that Kenya has made the required substantial and significant 
progress. To measure this progress, MFA is likely to use the 
international corruption benchmarks established in 2004 by 
the Donor Budget Support Group, a sub-group of the World 
Bank,s Kenya Consultative Group. 
 
¶6. (C) This Parliamentary measure is not legally binding, but 
in follow up discussions MFA noted that it was adopted by a 
majority. GONL has rarely deviated from the intent of such 
resolutions in the past, and MFA stressed that it is their 
full intent to comply with the measure. 
ARNALL