Why Ruto ditched China for the US, Experts
3 min read
Experts say Ruto ditched China for the US after Kenya exhausted its interest with the second world's largest economy
Experts say Ruto ditched China for the US after Kenya exhausted its interest with the second world’s largest economy.
Economic and political experts commented on President William Ruto’s expanding liaisons with Western countries, a break from Kenya’s close relationship with China.
In an interview on May 17, with local media, experts Dr. Wilfred Muliro, Professor Noah Midamba, and Rashid Abdi explained that Kenya had no option but to show reluctance to Chinese debts that had become unbearable due to their short-term nature and high-interest rates.
Muliro noted that Kenya could only look to the West after exhausting its interest with China
“The government has deliberately made itself to be pro-Western because we have exhausted our interest in China due to our debt burden.
“The reason for most global Foreign Policies is economic, and at the centre of it, Kenya came out to redefine her interest based on the most pressing needs and talk to those who could provide the cheapest and quickest solutions,” stated Muliro, a Diplomacy and International Relations Expert.
Midamba, an economist and former Vice Chancellor of KCA University, explained that Kenya stood a better chance in her quest for development if the country partnered with Western countries, especially the US which hosts many Kenyans.
“This country can leap front if we choose to, but you will not do it by chance. There must be purposeful structures that will allow Kenya to be there.
“During former President Mwai Kibaki, we created what was known as Diaspora Pillar, which was responsible for seeking economic relations with other countries,” the professor noted.
He further observed that, unlike other Asian countries, the United States had previously expressed interest in accommodating Kenyan professionals.
“We have around 3,000 Kenyan born Doctors in the United States of America and a similar number in Europe,” he added.
Rashid, a Diplomat who worked for the Ministry of Foreign Affairs and possesses over a decade of work experience in foreign relations, stated that President Ruto had warm engagements with Western powers even before the election.
“Some of the deals that the current government is sealing with Western powers must have been mooted way before the August 2022 General Election. That is how these diplomatic engagements are planned,” he explained
KEMSA scandal triggers reshuffling of Principal Secretaries in 6 ministries
Raila issues statement on Ruto’s proposed Finance Bill 2023
National Treasury in race to collect Sh1.3trn in two months
Canada forced to respond on Visa lottery news targeting Kenyans
The three experts explained that the terms of the loans from the US government are generally considered favourable to Kenya.
The interest rates are low and the repayment periods are long. This makes it easier for Kenya to repay its debt and use the funds for development projects.
On the other hand, Kenya’s debt to China had been a source of concern in recent years. As of 2023, Kenya owes China over Ksh700 billion ($6 billion), which accounts for about one-third of the country’s total external debt.
This debt was used to finance a number of major infrastructure projects, including the Standard Gauge Railway and the Lamu Port-South Sudan-Ethiopia Transport Corridor.
While as of 2023, Kenya’s debt to the United States was estimated to be around Ksh205 billion ($1.5 billion). This accounts for about 4 percent of Kenya’s total external debt.
According to the Central Bank of Kenya, the debt is owed to a variety of US government agencies, including the Export-Import Bank, the Millennium Challenge Corporation, and the US Agency for International Development.
Also read,
Ruto moves to overhaul Kenya Power after dissolving KEMSA board
Civil servants to receive KSh17.7bn pay rise in the next budget
Canada promises to support Ruto’s Hustler Fund project
Follow us
