BRICS Summit: Kenya Pushes for Renegotiation of Debt Repayment Period

Kenya is pushing for renegotiation and suspension of loan repayment by a maximum period of 20 years.

Delivering a statement at the 15^th BRICS Summit in South Africa, Foreign and Diaspora Affairs Cabinet Secretary Alfred Mutua noted, a relook into the repayment plan would allow majority of countries currently servicing their debt to focus on development.

“Truth be told, many African nations are suffocating in debt that is becoming more difficult to repay. This modern-day slavery of our livelihoods cannot be solved with nice words but concrete implementation of ideas,” Mutua noted.

“We propose a systemic resolution of the developing country debt overhang rather than case by case debt default workouts under the G20 Common Framework. This debt overhang is a big threat to developing country’s ability to finance development.”

“We do not want to keep on borrowing because all the finances we have are tied to debt repayment. We have to break the cycle. After the deferred payment period, nations will have developed their economies to such an extent that paying the debts will be much easier.”

Kenya like many other developing countries has consistently expressed concerns with the existing world development order characterized by an asymmetrical international financing system that is discriminative to the developing world.

While speaking during the United Nations Conference on Trade and Development (UNCTAD) Presidential Dialogue dubbed “Kenya: a driving force in accelerating continental Trade and Investment”, President Ruto said reforms in the international financial system will help boost investor confidence in Africa.

The President said derisking Africa will foster better relations between the public and private sectors for the common good.

He noted that the current financial system that has falsely profiled the global south as a risky investment destination works against the continent.

“There is no way you can get private sector money into Africa if we have not sorted out the issue of risk. Nobody will invest here,” he said.