RUTO ‘dumps’ the World Bank as he joins Asian Infrastructure Investment Bank headed by China – Look!

Tuesday, January 16, 2024 - President William Ruto may have dumped the World Bank for a rival bank despite many loans he has taken from the world lender.

This is after his Cabinet certified the decision for Kenya to join the Asian Infrastructure Investment Bank (AIIB), widely considered as a rival to the World Bank.

Initially, memoranda to join AIIB had been floated but were finally approved during the Cabinet meeting the Head of State held at the State House.

If ratified, Kenya will join 109 other countries that are already members of the bank split into two categories, 94 full members and 15 prospective members.

The bank fashions itself as a financier for infrastructure projects and other productive sectors to foster sustainable economic development, create wealth, and improve infrastructure connectivity.

"We adapt and innovate constantly to deliver customized investment solutions that overcome the challenges our clients face. They count on our resilience to help them meet their objectives even during the most difficult times," reads a description on its website.

Launched in 2016, the bank has so far approved 252 projects with Ksh8 trillion (USD50.47 billion) already disseminated.

The bank is headquartered in Beijing and China holds a majority stake at 26.61 per cent followed by India (7.6 per cent), Russia (6.01 per cent), and Germany (4.2 per cent).

In September last year, the AIIB admitted additional members, including El Salvador, Solomon Islands, and Tanzania.

The members now account for 81 per cent of the world’s population and 65 per cent of the global gross domestic product.

To join, the applicant is expected to complete the required domestic processes and deposit the first capital installment with the bank.

Ruto's administration's relationship with China has grown since he took over the reins in September 2022 despite being one of its biggest critics. 

The Kenyan DAILY POST