Donors suspend Kenyan aid

International aid donors have halted the flow of USD285 million in aid to Kenya, citing the government’s failure to effectively use the apportioned funds. The Central Bank of Kenya released a report citing lengthy procurement procedures and personnel recruiting delays as impediments to the proper utilization of allocated funds. “The reduced inflow of external grants during the year could be attributed largely to low absorption capacity of external resources which has in turn decreased utilization of the donor commitments by the Government,” stated the report. World Bank country director Colin Bruce also expressed his uncertainty over Kenya’s readiness to receive additional funding. (Source: Donors withhold funding citing low absorption/Business Daily Africa)

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