Ruto blows hot and cold on Kenya, US &China relations

By Wanderi Kamau

President William Ruto delivered a scathing critique of the World Bank and International Monetary Fund (IMF), branding them relics of a bygone era that no longer serve the needs of today’s rapidly evolving global landscape.

Speaking during a lecture at Peking University in Beijing on Wednesday, 24 April 2025, Ruto openly questioned the relevance of these financial giants, accusing them of being disconnected from the economic realities facing developing countries like Kenya. He argued that their outdated models and ideologies do little to support the ambitions of emerging economies in the Global South.

Addressing students and academics, the Kenyan leader noted that the current frameworks of the World Bank and IMF fail to instill hope or provide meaningful solutions for nations grappling with modern-day development challenges. He said the institutions remain rooted in Cold War-era thinking, yet the world has moved on to face far more complex issues.

Ruto’s remarks came during a high-profile trip to China, where he also paid tribute at Tiananmen Square. His comments appear timed with Kenya’s strategic efforts to maintain a balanced diplomatic stance between the world’s two superpowers—China and the United States—both of whom have recently extended significant economic support to Nairobi.

In recent years, Kenya has secured billions of dollars in concessional funding from the IMF and World Bank for economic stabilization and reform. Simultaneously, China has emerged as a major development partner, particularly in infrastructure.

President William Ruto delivers a public lecture at Peking University in China on April 23, 2025. Photo/PCS

“In the realm of international finance, the past few years have exposed the inadequacies of the global financial system in managing crises,” Ruto said. Citing examples such as the Covid-19 pandemic, the Russia-Ukraine war, and climate change, he criticized the institutions for failing to effectively respond.

He also took aim at global trade contradictions, highlighting the hypocrisy of advocating free markets while supporting subsidies, promoting globalization while enforcing tariffs—a likely reference to former U.S. President Donald Trump’s trade policies.

Calling for structural overhaul

Ruto didn’t just critique; he called for an overhaul. He urged a complete restructuring of the IMF and World Bank, asserting that they no longer fulfill their original missions. Initially created in the aftermath of World War II to stabilize economies and rebuild war-torn Europe, these institutions, he said, are now ill-equipped to address Africa’s development needs.

He pointed out that the IMF was designed to uphold a fixed exchange rate system, a mechanism that collapsed decades ago. Meanwhile, the World Bank’s founding goal of rebuilding Europe holds little relevance for today’s global south.

Ruto argued that these financial institutions continue to reflect the geopolitical divides of the Cold War, disproportionately serving the interests of wealthier nations while sidelining poorer ones. “Emerging economies are often penalized with high borrowing costs and rigid fiscal conditions, even as they’re criticized for lacking discipline,” he said.

He called for more inclusive governance structures within the IMF and World Bank, where currently, the most powerful Western nations dominate decision-making through a shareholder model. At the time of their founding, many of today’s countries were still colonies and had little say in shaping these institutions.

While acknowledging that the IMF and World Bank have evolved into key development financiers, Ruto stressed the need for governance reforms to match their changing roles.

A section of the audience at President William Ruto’s public lecture at Peking University, China, on Wednesday, 23 April, 2025. Photo/ PCS

Specifically, he called for greater accessibility to the IMF’s Special Drawing Rights (SDR) for African nations. SDRs are reserve assets distributed based on a country’s shareholding in the IMF, which often favors larger economies.

While he admitted that many reforms are necessary, Ruto emphasized that the most critical changes involve how these institutions are governed. “Resilient economies can only be built if global institutions are restructured to reflect national development interests,” he said.

Ironically, his sharp critique coincided with praise from the IMF, which recently rated Kenya highly for its governance and debt management practices.

During his visit, Ruto also made history as the first African head of state to be officially hosted by China under the Belt and Road Initiative—a vast, multi-trillion-dollar project aimed at expanding Chinese global influence through infrastructure. Kenya signed several agreements with China during the trip, covering sectors such as energy, transport, housing, and water.

Despite China’s growing footprint, the United States remains a vital partner, with Ruto having made two trips there in less than two years—first as Deputy President and later as President—underscoring Kenya’s diplomatic balancing act between the East and West.