EU assembly urges freeze of aid to Kenya

STRASBOURG, France (Reuters) - The European Parliament said on Thursday the bloc should freeze budgetary aid to Kenya until the crisis over President Mwai Kibaki's disputed re-election is solved.

The European Parliament "asks for the freezing of all further budgetary support to the government of Kenya until a political resolution to the present crisis has been found", the MPs said in a resolution.

Although European Union aid to Kenya is limited compared with what it gives poorer African countries, the wealthy bloc is one of Nairobi's top donors, providing 290 million euros (216 million pounds) between 2002 and 2007.

A further 383 million euros of EU aid to Kenya is planned for 2008-2013, a third of which is budgetary aid.

The EU is reviewing its relations with Kenya, and studying which actions to take if current African mediation efforts fail.

"All options are a possibility including an eventual partial or total freezing of aid," said John Clancy, European Commission spokesman for development and humanitarian aid.

"We are watching for developments on the ground to decide what measures should be taken and when," Clancy said, adding that the EU's priority was to support mediation.

Any decision to freeze aid would be taken by the 27 member states on a proposal by the bloc's executive Commission.

Condemning the violence in a crisis that has killed hundreds, the lawmakers said the result of the election was not credible and called for a fresh vote if a fair recount was not possible.