President William Ruto has called for reforms to the global financial system, warning that high debt-servicing costs are increasingly squeezing government spending on education, healthcare, nutrition and social protection for children.
Ruto said public debt should no longer be viewed only as a matter of government balance sheets, arguing that the cost of servicing debt can directly affect the quality of services available to the next generation.
“When budgets tighten, children pay the price first,” Ruto said during a high-level dialogue on debt, development and the next generation hosted by UNICEF in New York on the sidelines of the United Nations General Assembly.
The President said developing countries face high borrowing costs and limited access to affordable, long-term financing, while climate shocks, economic disruptions and other external crises can further increase debt vulnerability.
“I have consistently argued that the global financial system must become fairer, more responsive and more inclusive,” he said.
Ruto cited global public debt of $102 trillion in 2024 and said developing countries paid an estimated $921 billion in net interest. He added that in 46 developing countries, interest payments exceed spending on either health or education.
The President argued that the figures have consequences beyond public finances, saying reduced fiscal space can translate into fewer classrooms, health workers and opportunities for children.
“The squeeze starts in the treasury. It lands in the classroom, the clinic and the nutrition programme,” he said.
The concerns echo those raised by UNICEF, which has warned that debt burdens are limiting governments’ ability to invest in essential services for children. UNICEF has reported that hundreds of millions of children live in countries where debt pressures are outpacing investments in health, education and nutrition.
Ruto nevertheless said Kenya would continue to honour its financial obligations while maintaining fiscal discipline and macroeconomic stability.
“Budget discipline is necessary. But debt sustainability is also a moral responsibility,” he said, arguing that a country’s financial sustainability should also be assessed by whether it can continue providing essential services to its population.
The President called for children to be placed at the centre of debt-sustainability assessments, asking creditors and policymakers to consider whether countries can continue financing education, healthcare, nutrition and social protection while meeting their debt obligations.
Among his proposals were protecting essential social spending during periods of fiscal adjustment, expanding affordable and predictable concessional financing, and increasing the use of innovative instruments such as debt swaps for education, healthcare, nutrition and climate resilience.
Ruto also called for debt restructuring mechanisms that are fair, timely and effective, alongside stronger public-finance systems to ensure that funds allocated to children’s programmes reach their intended beneficiaries.
He proposed greater use of child budget tagging, expenditure tracking and monitoring involving governments, development banks, UNICEF and other development partners.
The debate over the cost of debt comes as international institutions continue to call for reforms that can reduce borrowing costs and expand long-term development financing. The United Nations’ SDG Stimulus initiative, for example, identifies the high cost of debt and limited access to affordable long-term finance as major constraints on development in lower-income and developing economies.
Ruto also linked debt and development finance to climate action, saying Africa needs affordable capital, guarantees and risk-sharing instruments to unlock investment in renewable energy, green industries and climate-resilient infrastructure.
He said climate finance remains a major constraint and called for commitments on adaptation finance to be honoured as African countries seek to strengthen their resilience while creating jobs and expanding economic opportunities.
The President later co-hosted with Norway a high-level event on clean cooking in Africa, ahead of the Second Africa Clean Cooking Summit scheduled for Nairobi in January 2027. He said clean cooking represents both a public-health priority and an opportunity to mobilise investment as Africa transitions towards cleaner energy.
Ruto said Kenya had identified a $600 million investment opportunity in clean-cooking solutions covering schools, healthcare facilities and correctional institutions, with financing expected to include local-currency funding and guarantees.
His engagements in New York also included a high-level reflection on the Pact for the Future, where he said commitments made by world leaders two years ago must now translate into measurable results.
The President’s interventions place financing at the centre of several of Africa’s development priorities, from protecting spending on children to climate resilience and clean-energy investment, with calls for the international financial system to provide developing countries with greater access to affordable and predictable capital.
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