President William Ruto has renewed calls for reforms of the International Monetary Fund (IMF) and Bretton Woods Institutions, insisting that they must align with present-day global realities to ensure fairness, especially for African and other developing nations.
Speaking during the 80th Session of the United Nations General Assembly (UNGA) at the UN Headquarters in New York, President Ruto said the current global financial architecture is outdated, unfair, and discriminatory.
He argued that the system punishes poor countries with high interest rates and stringent conditionalities while rewarding wealthy nations with lower borrowing costs and softer lending terms.
Tracing the origins of the IMF and World Bank to the post–World War II era, President Ruto observed that their design reflected the power and interests of the victorious nations, who remain the main shareholders and beneficiaries to date.
“The IMF was tasked with upholding global standard exchange rates, while the World Bank was established to finance Europe’s reconstruction. Both have since evolved into development financing institutions, but their structures, decision-making, and governance remain dominated by wealthy nations,” Ruto said.
He emphasized that while the global context has changed significantly, governance within these institutions has not kept pace.
“The global standard collapsed five decades ago, and Europe has long since been rebuilt. Yet, the governance of these institutions has failed to reflect the needs of a multipolar world, particularly the aspirations of poor and developing nations,” he noted.
President Ruto cited the IMF’s recent allocation of Special Drawing Rights (SDRs) as a glaring example of imbalance.
“Sixty-four percent went to wealthy nations with little need for liquidity support, while poorer countries received just 2.4 percent. Imagine that those who least needed the support received the lion’s share,” he said.
He stressed that such disparities expose how institutions intended to safeguard global financial stability instead perpetuate inequality and vulnerability.
“I have argued before, and I repeat: the current financial architecture punishes poor countries while rewarding the wealthy. Its rules and allocation mechanisms favour those already prosperous, while trapping vulnerable economies in cycles of debt, high borrowing costs, and limited access to emergency support,” he said.
Ruto called for the transformation of the IMF and World Bank into independent, apolitical institutions whose operations are aligned with their global mandate.
“Such a shift would democratize decision-making, restore credibility, and enable these bodies to serve all nations fairly rather than reinforcing old hierarchies,” he said.
Highlighting Africa’s proactive steps, the President pointed to the launch of the African Alliance of Multilateral Financial Institutions under the African Union in February 2024.
“Africa is not merely waiting for external prescriptions. We are taking bold, deliberate steps to strengthen financial independence, safeguard stability, and accelerate development,” he said.
The Alliance brings together homegrown institutions including the African Export-Import Bank (Afreximbank), Africa Finance Corporation (AFC), Trade and Development Bank Group (TDB Group), Shelter Afrique, African Reinsurance Corporation (Africa Re), African Trade and Investment Development Insurance (ATIDI), and ZEP-RE.
Kenya, he affirmed, fully supports the establishment of such institutions that embody Africa’s determination to mobilize resources, finance trade, and build resilience on its own terms.
At the same time, the African Union is advancing three transformative projects: the Africa Central Bank, which will issue a single currency to reduce dependence on foreign money; the Africa Monetary Fund, designed to stabilize economies and enhance financial sovereignty; and the Africa Investment Bank, meant to mobilize resources for infrastructure, industrialization, and continental integration.
“To complete this vision, the Africa Credit Rating Agency, an institution that understands our realities, values our uniqueness, and tells our story, has already been established,” Ruto added.
