MEPs vote to freeze Kenyan cash
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The European Parliament calls for the EU to halt direct budgetary aid to the Kenyan government.
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Kenya's re-election of President Kibaki was "flawed", say EU election monitors in an interim report.
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The decision not to call general election leaves cash-strapped party with Â£1m bill after it spent five times as much as Tories on preparations.
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Kenyans voted on Thursday in presidential and parliamentary polls preceded by violence and soured by delays and charges from the main opposition challenger that the government was plotting to rig the result.
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The government tightened security around Kenya's parliament Tuesday for its first session since a disputed presidential election, a fight that has provoked deadly violence and was expected to carry over to the selection of a house speaker.
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Nationwide violence since a disputed presidential poll may have cost the Kenyan economy close to a billion dollars, the finance ministry said Tuesday.
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The Bank of England is ordering a freeze on any assets belonging to a terrorist group that claimed responsibility for kidnapping and beheading two Americans and a Briton in Iraq, Treasury chief Gordon Brown said Thursday.
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MEPs are demanding sweeping new powers to vote on, and sack, individual European Commissioners as the price for backing JosÃ© Manuel Barrosoâs new EU executive.
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International mediators are arriving in Kenya to help end the political standoff after last week's disputed vote.
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Kenyan voters went to the polls on Thursday to elect a new president and parliament with delays in some locations and charges from the main opposition candidate that the government was trying to rig the result.
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Kenya's government and opposition were on Tuesday wrestling for control of parliament after the disputed re-election of President Mwai Kibaki.
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Kenya's feuding parties prepared on Monday for a new showdown in parliament and on the streets despite another international push to mediate a post-election crisis that has now killed at least 612 people.
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UK travel companies due to meet to decide on whether to extend a ban on holidays to Kenya
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British tour operators on Thursday cancelled holidays to Kenya for the rest of the week because of violence following disputed elections and government advice against all but essential travel there.
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The European Union and the United  Nations urged Kenya's feuding politicians on Saturday to agree  a peaceful, democratic end to a violent political crisis that  has killed 500 people since a disputed December 27 election.
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Millions of Kenyans voted on Thursday in a close-fought national election marred by delays, sporadic trouble and rigging charges from the opposition.
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The G7 group of industrialised nations, led by the UK, agrees to freeze debt repayments by tsunami-stricken countries.