As Kenya’s economy recovers, albeit with the bitter pills that the doctor said we must take before we turn the corner, even the most strident of President William Ruto’s critics will acknowledge that his charm offensive abroad has begun to bear fruit.
By far the most noticeable single leader in the Global South to shine a spotlight on the real impact of climate change on national economies and its threat to livelihoods, Ruto has used his newfound stature to good effect.
He has not only used every opportunity to point to the dangers that lie ahead, he has also fought hard to rally support for the need to change global financing models and structures as one way of mitigating the adverse impact of climate change and global warming on the developing world.
In September, Kenya successfully hosted the inaugural Africa Climate Summit, which secured $23 billion in funding for green projects on the continent. On the heels of the summit, the President took to the podium in Germany, France and Saudi Arabia to passionately push this agenda, to great applause.
Thanks to the charm offensive abroad and ongoing reforms at home, Kenya, on November 16, secured an additional $938 million from the International Monetary Fund, a boost the country needs as it grapples with a budget deficit.
Beyond the cash injection, the facility also offered a dose of confidence to investors that is bound to trigger greater foreign direct investment.
The financing, together with expected funds from the World Bank and regional banks, will allow Kenya to pay maturing foreign debt without running down its hard currency reserves.
The support came at a time the President announced that Kenya would pay the first $300 million instalment of the $2 billion Eurobond debt that falls due next June. Fears of a default had already sent jitters through markets.
Ruto is walking the talk on economic reforms and climate change leadership, and influential institutions like Time Magazine have taken note. But more about this later.
Climate change undoubtedly has an impact, not only on Kenya’s economy, but also on the security of the Horn of Africa and the Sahel regions, as greater competition and ever-diminishing resources are a recipe for conflict.
So seriously has the President taken his climate change campaign that he mobilised the entire government in planting trees across the country on November 13, a day that has now been gazetted as a national holiday in order to give more impetus to the government initiative to plant 15 billion trees by 2032 to tackle the climate crisis.
The President is head of the African Union organ on climate change, and as he leads the continent to the 2023 United Nations Climate Change Conference or COP28 in the United Arab Emirates, it is worth asking what is in it for Kenya?
The President’s answers in an interview with Time offers a clue. Asked about the most important climate legislation he would like to see, the President spoke eloquently that the global carbon price should reflect the true cost of climate change, and that associated trade regulation should enable global solutions.
Proper pricing, he added, is needed to create incentives for making climate-smart solutions. Already, many carbon credit projects are underway in Kenya and any increase in prices would have far-reaching economic effects.
He also spoke of the need for capital providers to realise that the risk of investments in Africa generally is structurally overstated and bring down the cost of capital. Africa can offer climate-positive growth, he stressed.
“It can be a globally cost-competitive climate action powerhouse, greening global supply and manufacturing chains and removing carbon,” he said. All this speaks to boundless opportunities for job creation and improved livelihoods.
One year into office, Ruto’s charm offensive on the international stage illustrates that he is one of Kenya’s most resourceful champions.
Lawrence Lomuria is a communications specialist on developmental matters
