President William Ruto on Thursday called for urgent reforms in the international credit rating and debt sustainability systems, advocating for a fairer financial landscape for African nations. 

Speaking at the Belt and Road Initiative (BRI) summit in Beijing, China, Dr Ruto emphasised that the current global financial framework has unfairly stunted the development of many countries in the Global South, including Kenya.

The head of state highlighted the impact of these unjust systems, stating that they had significantly slowed economic growth across the region. 

He called on China to collaborate with African nations in restructuring their debts and extending grace periods to ease repayment pressures.

His remarks come on the heels of a series of credit rating downgrades for Kenya.

In August, Moody’s downgraded Kenya’s credit rating from "B3" to "Caa1," citing the government's challenges in managing its ballooning debt.

The agency expressed concerns over Kenya’s weak debt affordability, which it projected would persist for a prolonged period. 

Moody’s also warned that the country's reliance on budget cuts, following the withdrawal of the Finance Bill, 2024 could further strain its fiscal stability.

"The negative outlook reflects heightened risks surrounding government liquidity," Moody’s noted, adding that slower fiscal consolidation could hamper Kenya’s ability to secure external funding, including support from multilateral creditors.

In addition, S&P Global Ratings downgraded Kenya’s credit rating two weeks later, moving it from "B" to "B-," similarly attributing the decision to the repeal of the Finance Bill, 2024 and its negative impact on Kenya’s fiscal and debt outlook. 

More recently, Fitch Ratings also downgraded Kenya's rating from "B" to "B-," citing the ongoing fiscal challenges.

Amid these downgrades, Dr Ruto called on global stakeholders to increase contributions to the World Bank’s International Development Association (IDA), which offers low-interest loans to struggling economies. 

He argued that this would enable more African countries, including Kenya, to access concessional funding and stabilise their economies.

“This will help African nations secure vital funding at lower interest rates, supporting economies that are heavily affected by financial instability,” he remarked.

He also urged African leaders to work together in positioning Africa’s needs in global discussions.

The president commended the ongoing cooperation between China and African countries on transformative development initiatives, underscoring the importance of a strong foundation to drive Africa’s turnaround. 

According to Dr Ruto, these reforms are critical for the continent to address key challenges such as unemployment, poverty, climate change, inequality, and political instability.