Ruto calls for overhaul of global financial system over debt crisis

President William Ruto has called for reforms to the global financial system, citing high borrowing costs and mounting debt burdens as factors constraining developing nations' capacity to invest in crucial areas such as health, education and economic expansion. Speaking at the 81st United Nations General Assembly, Ruto argued that the institutions established post-World War II fail to reflect the current world order, which now comprises 193 UN member states.

He also reiterated his demand for enhanced African representation within global decision-making structures, including a permanent seat on the UN Security Council. Ruto drew a direct correlation between the overhaul of the international financial system and the escalating debt burdens faced by developing countries. According to data provided by the President, global public debt reached $102 trillion in 2024, with developing countries holding less than a third of that debt but paying a significant portion of the interest, approximately $1 trillion.

Ruto highlighted that 46 developing nations are currently diverting more funds to interest payments than they allocate to health or education. "The hospital competes with the creditor, the classroom competes with debt service and, too often, the creditor is paid first," Ruto remarked. He emphasized that developing countries have recently been burdened with borrowing rates that are two to four times higher than those available to wealthier economies.

Ruto urged multilateral development banks to broaden their lending capacity, attract private capital, and offer more guarantees and risk-sharing mechanisms. Additionally, he advocated for extended-term local-currency financing to empower developing countries to fund viable projects without encountering exorbitant borrowing costs.

The president stressed that financial reforms should be pursued concurrently with changes in global governance. With 54 UN member states, Africa lacks a permanent seat on the Security Council, which consists of five permanent members—China, France, Russia, the United Kingdom, and the United States—each possessing veto powers. Ruto demanded equitable and permanent African representation on the Council and urged countries to adhere to international law consistently.

He also asserted that African nations are striving for more opportunities to industrialize and generate job opportunities instead of relying solely on development assistance. This call emerges amidst broader international dialogues on the reform of global financial institutions, with the UN identifying debt vulnerabilities, elevated capital costs, and access to finance as key issues of concern for Africa in the lead-up to the 81st General Assembly.

Ruto's plea for alterations to the global financial system coincides with Kenya grappling with a substantial domestic debt burden. As of June 2026, Kenya's public and publicly guaranteed debt amounted to Ksh13.01 trillion, comprising Ksh7.33 trillion in domestic obligations and Ksh5.68 trillion in external debt. The president has previously connected Kenya's development aspirations to modifications in global financing, encompassing sustainable debt management and the augmentation of private capital mobilization.

The government has also advocated for reforms that would render development financing more accessible to African economies. At the UN, Ruto emphasized that reform should be complemented by robust domestic financial management. He advocated for prudent debt management, strengthened institutions, expanded domestic capital markets, respect for contractual obligations, and efforts against corruption.

Ruto reiterated that Africa does not seek charity but rather seeks sovereign equality and a fair chance to industrialize and participate more actively in the global economy.