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Kenya has been facing severe liquidity challenges, and according to a senior administration official, the United States is pressing major creditor nations, including China, Kenya’s largest creditor, to provide relief to debtor countries.
The official said Biden and Ruto will also discuss security cooperation as the US-Kenyan relationship expands from regional efforts to more of a global partnership.
What the official said:”We think it’s essential that responsible debtors provide reprieves for countries like Kenya, whether that’s by debt service suspensions or via new grant assistance.”
Washington is also urging international financial institutions to offer low-cost financing to Kenya and other countries. The official said that during this week’s state visit, there will likely be joint announcements about debt relief “on how countries like Kenya can tackle this problem of debt.”
One of Washington’s objectives in scheduling a high-profile visit by the Kenyan leader is to counter China’s growing influence in Africa.
Last month, US Treasury Undersecretary Jay Shambaugh warned China and other extensive lenders to low-income countries against “free-riding” by collecting debt service payments while cutting back on follow-on loans.
These comments reflect increasing frustration among Western countries and debtor nations over Beijing’s slow progress on debt restructuring efforts and the sluggish pace of debt relief agreements.
Eric LeCompte, executive director of Jubilee USA Network, an interfaith alliance of religious, development, and advocacy organizations, said Mr Ruto’s visit would send important signals regarding US policy toward the Africa. – Business Insider Africa
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