A further $562m of aid is planned for 2008-2013.

Reviewing relations

The 27-member bloc is reviewing its relations with Kenya and studying what actions to take if current African mediation efforts fail to resolve the country's political crisis.

Louis Michel, the EU aid and development commissioner, said on Wednesday that budgetary aid could be suspended if the crisis remained unsolved.

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

The parliament said it was "deeply preoccupied by the social repercussions of the current economic crisis, its detrimental effect on the country's socio-economic development and the economic consequences for neighbouring countries".

The members of European parliament criticised the EU executive for disbursing $60m of budgetary aid on December 28, a day after the election.

Michel said the aid had been disbursed before doubts over the presidential vote results had emerged.