By Erestinah Jane, July 1, 2026
President William Ruto has claimed that international lenders often require African countries to adopt non-development policies as a condition for accessing external financing, arguing that excessive dependence on foreign credit undermines the continent’s sovereignty and ability to determine its own development priorities.
The President made the remarks on June 30, 2026, during the 25th anniversary celebrations of the African Trade & Investment Development Insurance (ATIDI) at State House, Nairobi, where he urged African nations to pursue greater financial independence by mobilizing domestic resources to fund development.
Ruto said many developing countries seeking international loans are subjected to conditions that extend beyond economic reforms and fiscal management.
According to the President, some lenders require governments to enact legislation unrelated to the development projects being financed, including laws touching on issues such as sexuality.
He argued that such conditions interfere with the sovereign right of countries to make decisions based on their own constitutional frameworks, cultural values and national priorities.
“We are told, ‘Do this, go and pass this law… go and pass the sexuality laws,'” Ruto said, maintaining that these requirements have little connection to the intended use of borrowed funds.
The President warned that continued reliance on external financing leaves African governments vulnerable to political influence and policy prescriptions that may not reflect local realities.
He called on African leaders to strengthen domestic financing mechanisms that would reduce dependence on foreign lenders while giving governments greater control over their development agendas.
To illustrate his point, Ruto cited Kenya’s Affordable Housing Programme, saying previous attempts to obtain international financing for the project were unsuccessful.
Rather than abandoning the initiative, he said the government opted to establish the Affordable Housing Fund, financed through a mandatory 1.5 per cent contribution shared equally between employers and employees.
According to the President, the locally financed model has generated a portfolio worth approximately KSh 1.2 trillion within three years, demonstrating that large-scale national projects can be financed using domestic resources.
He said the success of the housing programme should encourage African countries to develop innovative financing solutions that rely on local savings, pension funds, financial institutions and capital markets instead of expensive foreign borrowing.
Ruto also challenged African leaders to move away from what he described as a culture of blaming external actors for the continent’s economic challenges.
He argued that Africa possesses sufficient domestic capital to finance much of its own development if governments strengthen banking systems, encourage national savings and improve resource mobilization.
The President further emphasized the importance of regional financial institutions such as ATIDI in supporting investment, reducing financial risks and unlocking private sector financing for infrastructure and economic development across the continent.
He said strengthening African-owned financial institutions would help countries secure sustainable funding while protecting their policy independence and reducing exposure to external political pressures.
Ruto concluded by urging African governments to build stronger domestic economies capable of financing long-term development through locally generated resources, saying economic self-reliance remains essential to safeguarding the continent’s sovereignty and accelerating inclusive growth.
