EU THREATENS TO WITHHOLD AID

C O N F I D E N T I A L NAIROBI 002614 E.O. 12958: DECL: 11/18/2018 TAGS: PREL KPAO PGOV KE SUBJECT: EU THREATENS TO WITHHOLD AID Classified By: Polcouns Mitch Benedict for reasons 1.4 (b,d) ¶1. (C) At a press conference November 17 on the occasion of "European Development Days," French Ambassador Elisabeth Barbier and EC Head of Delegation Eric van der Linden were questioned on European views with regard to implementation of the Waki Commission recommendations. Headlined the following day as "EU Threatens to Withhold Aid," press reporting linked the EU's provision of budgetary support to implementation of the Waki Commission recommendations. However, according to the British High Commission Polcouns no such link was made -- Barbier was "misquoted," and he was not aware of any discussions of withholding aid. The French Press Officer confirmed that the press reporting was sensational, and that no threat to assistance was implied. ¶2. (C) Follow up calls to the EC Delegation revealed a different story. Wairimu Njuguna, the EC Press Officer, told us that in response to questioning that Barbier and van der Linden were "quite clear" that EU budgetary support is linked to progress on governance, and failure to implement Waki Commission recommendations would be considered lack of progress on governance. According to Njuguna, on Kenyan television "KTN" the night of November 17 van der Linden was even more explicit in linking EU budgetary support to implementation of the Waki Commission recommendations. ¶3. (C) We have been publicly and privately pressing for implementation of the entire reform agena, and there is movement. The threats made by the EU will likely be counter-productive with the coalition government. RANNEBERGER