UN's Debt Swap Programme: How Ruto Plans to Clear Kenyan Loans

  • By Mark Obar on 2 February 2023 - 7:58 pm
    António Guterres and William Ruto
    A photo collage of the United Nations (UN) Secretary-General António Guterres (Left) and President William Ruto (Right).
    Twitter/William Ruto

  • President William Ruto's government, on Thursday, February 2, exploited a new debt management system in the country. 

    Ruto, who assigned Prime Cabinet Secretary Musali Mudavadi to attend to the matter, sought to partner with the United Nations on crafting solutions to manage the debt crisis.  

    Mudavadi met with World Food Programme country director, Lauren Landis, to discuss the debt crisis that Kenya is currently witnessing.

    "I welcome the initiative by the World Food Programme (WFP) that aims at helping Kenya benefit from the Debt Swap programme. 

    Mudavadi and Lauren
    Prime Cabinet Secretary Musali Mudavadi met with World Food Programme country director Lauren Landis on Thursday, February 2, 2023.
    Twitter/Musalia Mudavadi

    "This programme will aid us in reducing foreign debt stress on Kenya," Mudavadi noted. 

    On her part, the World Food Programme boss Lauren noted that the Debt Swap programme would greatly help Kenya's economy. 

    The two leaders explained that the Debt Swap programme has widely and successfully been used in many countries, especially, in the European Council. 

    "Debt swaps refer to agreements between a creditor and a debtor, wherein the existing debt is replaced by a new instrument or commitment, entailing some financial relief for the debtor and a reallocation of cash flows towards targeted objectives," European Union explained. 

    At the same time, Mudavadi and Lauren agreed to focus on programmes that will improve agricultural activities in Kenya. 

    In the near future, Kenya and the United Nations (UN) will sign deals that will ensure that the agreements are well ratified within time. 

    Musalia revealed that President William Ruto's major focus was on recovering the economy and renegotiating some volatile debts. 

    "This will in turn help the government focus more on improving agricultural growth by supporting local farmers increase food production for Kenya to become more food secure," Musalia confirmed.   

    Mudavadi and Lauren
    Prime Cabinet Secretary Musali Mudavadi (Left) met with World Food Programme country director Lauren Landis (Centre) and other leaders on Thursday, February 2, 2023.
    Twitter/Musalia Mudavadi