  We compute the effective Kahler potential for matter fields in warped
compactifications, starting from five dimensional gauged supergravity, as a
function of the matter fields localization. We show that truncation to zero
modes is inconsistent and the tree-level exchange of the massive gravitational
multiplet is needed for consistency of the four-dimensional theory. In addition
to the standard Kahler coming from dimensional reduction, we find the quartic
correction coming from integrating out the gravity multiplet. We apply our
result to the computation of scalar masses, by assuming that the SUSY breaking
field is a bulk hypermultiplet. In the limit of extreme opposite localization
of the matter and the spurion fields, we find zero scalar masses, consistent
with sequestering arguments. Surprisingly enough, for all the other cases the
scalar masses are tachyonic. This suggests the holographic interpretation that
a CFT sector always generates operators contributing in a tachyonic way to
scalar masses. Viability of warped su- persymmetric compactifications
necessarily asks then for additional contributions. We discuss the case of
additional bulk vector multiplets with mixed boundary conditions, which is a
partic- ularly simple and attractive way to generate large positive scalar
masses. We show that in this case successful fermion mass matrices implies
highly degenerate scalar masses for the first two generations of squarks and
sleptons.
