Kenyan President William Ruto has criticised the global lending system, labelling it as “unfair, punitive, and biased against providing equal opportunities to all.”
POLITICS NIGERIA reports that Ruto expressed his views during an interview with AFP while attending a two-day summit in Paris aimed at overhauling the international financial order to better assist developing nations in addressing poverty and climate change.
Ruto highlighted the significant disparity in interest rates, with poorer countries burdened by rates up to eight times higher than wealthier nations due to being deemed risky. However, he emphasised that Kenya is not seeking handouts or favouritism.
Rejecting the portrayal of Africans as helpless victims of climate change in need of assistance, Ruto stated that his country aspires to be actively engaged in finding solutions.
The Kenyan leader emphasised the importance of attracting private investment rather than relying solely on development aid for his country in East Africa. Simultaneously, he called for reforms within international institutions such as the International Monetary Fund and the World Bank. Ruto also advocated for a reevaluation of debt management strategies for developing nations and the implementation of international taxes on shipping, aviation, and financial transactions.
Kenya currently allocates $10 billion annually to service its debt. Ruto proposed redirecting these funds towards national development, which would yield an immediate and substantial impact.
He suggested converting the debt owed to international lenders, including the World Bank and IMF, into a 50-year loan facility with a grace period of 20 years, ensuring that Kenya does not evade its financial obligations but rather modifies the repayment terms.
French President Emmanuel Macron, addressing the summit, agreed that the global financial system necessitates an overhaul, asserting that countries should not have to choose between poverty reduction and environmental protection.
The summit, which has in attendance President Bola Tinubu, is set to end on Friday.
