Ruto’s Speech At New Global Financial Pact Summit Was Well Thought Out
The Mt Kenya Times 
President William Ruto speaking to other leaders during a roundtable meeting in Paris on June 22. Photo: PCS
By: Joseph Mutua Ndonga
Worth Noting:
- We now the money you lend to us comes from exchequer of the superpowers. We also make our contribution to better their lives. Given this scenerio, it is good to engage Africa in consultations before arriving at your verdicts.
- Further, President Ruto rooted for a low, flat interest rate, extension of grace and loan repayment periods.
- He also called on IMF and World Bank to consider extending the tenure of Kenya’s debts from 10 years to be repaid in 50 years.
- Once again, this demonstrated that President William Ruto is committed to walk the talk. This is in terms of coming up with solutions to ease the burden placed on Kenyan taxpayers.
President William Ruto was among the 50 heads of state who attended the just concluded international summit organized by the International Monetary Fund (IMF) and World Bank (WB) held in Paris, France.
Dubbed the New Global Financial Pact Summit, the leaders seized this opportunity to share their views and observations regarding the rules of engagements with these two renowned international lenders.
These developing nations relied on the loan money offered by these institutions to implement some of the mega development projects and programmes.
I listened to President William Ruto’s speech which I’m sure many Kenyans would agree with me that it was powerful and well thought out.
He minced no word in faulting some of the conditionalities attached these loans.
First, he cited the terms of the loans’ interest rates which are varied.
For us in Africa, Kenya is not an exception, you have been slapping with high interest rates, eight times more than countries which you places in the same category.
The reason is because you consider lending to us as a risky affair.
This is wrong because it amounts to generalization and blanket condemnation.
Here, Dr Ruto’s point was clear and well understood.
A time has come for the Breton Wood Institutions to review their rules and regulations.
The verdict should be based on each country’s record of loans repayment.
Those who default should not be harassed. They should be treated with respect and decorum.
Give them time to explain why they have not repaid. Agree to extend the time of repayment and advise them on how to rebuild their respective economies.
This is in order to meet their loans’ obligations.
But as Dr Ruto noted, a number of these poor nations faulted some of the Breton Woods prescriptions saying they offered no solution to a myriad of economic challenges they encountered.
To mitigate this, the two lenders should stop imposing conditionalities down our throats.
We are not downplaying your role in terms of helping us to rebuild our economies.
We now the money you lend to us comes from exchequer of the superpowers. We also make our contribution to better their lives. Given this scenerio, it is good to engage Africa in consultations before arriving at your verdicts.
Further, President Ruto rooted for a low, flat interest rate, extension of grace and loan repayment periods.
He also called on IMF and World Bank to consider extending the tenure of Kenya’s debts from 10 years to be repaid in 50 years.
Once again, this demonstrated that President William Ruto is committed to walk the talk. This is in terms of coming up with solutions to ease the burden placed on Kenyan taxpayers.
As we know, he took over the government at a time when the country was struggling to repay foreign debts totaling to Sh9 trillion. This would go down as the biggest debt since Kenya attained its independence.
To add salt into injury, these debts started maturing soon after he assumed office.
Ever since, his government was spending 65 percent of the revenues collected to repay the loans.
To me, this informed the recent decision by parliament to pass the Finance Bill, 2023.
President Ruto was fully aware that the new tax regime would cause public uproars and outrage.
However, he had no other option. I’m delighted to note that members of parliament understood him. They included a good number of those in Opposition outfit Azimio La Umoja One Kenya Party.
Thier leader Raila Odinga had instructed them to reject the Bill in entirety. They however changed the mind and joined thier Kenya Kwanza counterparts to pass it.
Notably, Raila was a core principal in the ‘handshake’ government led by President Uhuru Kenyatta.
Many believed that this government runs down our economy.
By the time Uhuru was leaving office, the retail price of 2kg of Unga stood at Sh230. The prices of fuel and electricity were also higher.
This is despite the fact the duo had put in place a subsidy programme for these commodaties.
Billions of shillings of taxpayers’ money were channeled to the companies owned by people who many believed were their cronies, relatives and close friends.
Kenyans only accessed the subsdised fuel and Unga for one or two weeks. People in many parts of the country used to complain. These commodaties would not reach thier localities.
In the countdown to 2022 polls, people of Githurai (44) where I resides only got subsidized Unga for one day. It was supplied to only one Supermarket, Naivas. People were allowed to buy one packet. Many of them left without it. The Unga got finished as they queued.
After this, prices will shoot up. What does this tell you? It seems a huge chunk of money was being diverted to line up the pockets of a few favored wealthy Kenyans who operated like cartels.
In a nutshell, Dr Ruto found the country in a big hole. When you find yourself here, you don’t dig it any more. Instead, you find ways of refilling it. This is what President Ruto is doing.
We are not going to tighten our belt for long. Dr Ruto is working hard to rebuild our economy and return it back to where President Mwai Kibaki left it. Let us support him.
Joseph Mutua Ndonga is a writer and political analyst based in Nairobi
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