President Ruto Challenges IMF, World Bank Over Unfair Fund Allocation

President William Ruto has accused the International Monetary Fund (IMF) and the World Bank of unfair distribution of funds in the fight against climate change. Ruto is demanding reforms in the fund allocation framework, claiming that the international financial system favors polluters and penalizes nations that emit the least.

Ruto criticized the current financial structure, highlighting that African nations are required to repay loans at very high interest rates compared to those in the North. Speaking to Al Jazeera on Sunday, Ruto lamented the emitter bias in the current financial system, stating that the multilateral financial banks and the entire international financial system have not been just, fair, and accountable.

President Ruto further explained that the current financial setup discriminates against the global south and favors the global north. He pointed out that all sovereign states that have gone to the international financial market pay around 10% interest rates, whereas compatriots in the global north pay between 0.05% and 0.1%.

This state of affairs means that African nations are accessing development finances 100 times more expensively than those in the global north. The President expressed his concern that African nations are on the brink and require an urgent solution to be provided by the international financial institutions.

Kenya, for instance, has had to restructure its expenditure to allocate funds towards combating the perennial drought crisis, consequently impacting the country's development. Ruto stated that the international financial setup is rigged against those in the global south, especially in Africa, and called for a fair system.

"We need a new system that holds the emitters and polluters accountable for the climate crisis. We want an even conversation, not a financial system that favors us. We want a fair one," said Ruto.