Kenya’s Ruto Criticises “Unfair” Global Lending System, Requests IMF, World Bank Loan Review

Kenyan President, William Ruto, has slammed the unfair treatment of developing countries in the arrangement of the global lending system.

Ruto said the richer countries pay less interest rates compared to the poorer countries which are charged eight times more to repay loans obtained. 

He said poorer nations, which includes African countries, are profiled as risky, as such, their interest rates are higher, thereby, eliminating equality among the nations of the world.

“Some people do not want a mechanism where people are equal, they want us to continue this conversation where we are looking for help,” Ruto said in an interview with AFP on Thursday, 22 June, on the sidelines of the New Global Financial Pact two-day summit in Paris, France. 

Ruto said he’s tired of the story that portrays Africa as victims of climate change and a continent seeking help and always complaining. 

“We do not want to look for help. We want to participate in the solution,” Ruto said while requesting a review of the developing nations’ debt management. 

With Kenya paying about $10 billion yearly to service the country’s debt, Ruto said such an amount could be used to further develop the nation. 

“If we use it instead for development of the country, it will be immediate, it will be big resources and it will have huge impact,” Ruto said.

The president of Kenya called for the restructuring of debt to international lenders, such as the World Bank and the International Monetary Fund (IMF) into a 50-year loan facility with a 20-year grace period. 

Ruto also argued for the review of the international taxes on shipping, aviation and financial transactions. 

Meanwhile, he questioned the developed countries’ commitment to providing needed capital to fight climate change, as they have failed to meet their $100 billion pledge to support green economies in developing countries. 

However, they immediately rolled out billions of dollars to Ukraine after the invasion of Russia, even though Ruto believes the climate change matter is more important. 

He accused the leaders of the developed countries of dragging their feet, but are quick to support Ukraine, “Ukraine is nothing compared to the problem we face with climate change” which poses an “existential threat to everybody”, Ruto said.