President Ruto: Africa's problem is rules, not lack of capital

Instead, the President stated, Africa’s problem is the set of rules that decide where "that capital is allowed to go". 

He pointed out that research by the African Finance Corporation has proven that Africa has the resources necessary to lay the foundation for economic take off. 

Speaking during the 'Africa We Build High Level Roundtable meeting, convened by the Africa Finance Corporation on the sidelines of the United Nations General Assembly meeting in New York on Monday, President Ruto explained that what Africa lacks are organised investment and risk-sharing architecture rather than actual capital.

The Africa Finance Corporation (AFC) convened the event on the margins of the 81st session of the United Nations General Assembly.

"African non-bank domestic capital pools have passed $2 trillion, and our pension and insurance assets have crossed $1 trillion for the first time in our history," the President explained.

He noted that all external flows to the continent between 2014 and 2024, concessional and commercial together, totalled $1.7 trillion.

"Our own savings are now larger than other people’s money. Yet other people’s money is shrinking because Official Development Assistance has been falling every year since 2020," he pointed out. 

President Ruto announced at the meeting that Kenya would be a test case of how African risk should be assessed, declaring that it will open its default and recovery data to rating agencies and accept changes to the methodology if the evidence supports them.

He said financial rules are steering African pension savings towards Government securities rather than infrastructure development even where regulations allow greater investment in projects.

He pointed out that Kenyan pension funds hold 46 per cent of KSh3.2 trillion ($24.7 billion) stake in Government securities, but only 0.02 per cent in infrastructure debt.

"The rules allow pension funds to invest up to 10 per cent in infrastructure," he pointed out.

At the same time, President Ruto announced that Kenya has boosted its equity investment in AFC by KSh3.25 billion ($25 million).

In April 2016, the President noted, Kenya signed a Host Country Agreement with AFC, establishing the financial institution's first regional office in Nairobi and strengthening Kenya’s position as a financial hub. 

On the domestic front, he explained that Kenya listed an infrastructure bond on the Nairobi Securities Exchange in May 2026, raising KSh3.4 billion ($26 million) with the support of the United Kingdom.

"It is a modest sum against the need. But it was the first instrument of its kind that a Kenyan pension scheme can buy. We have begun the plumbing at home, and that is the point," he said, noting that the listing is the first step towards something much larger.

Additionally, President Ruto explained that in March 2026, Kenya signed the National Infrastructure Fund into law. He said it is intended to mobilise up to $40 billion for the development of road, port, energy generation and water storage and irrigation infrastructure financed by capital that shares the returns rather than  public debt.

"We are not asking pension funds, sovereign investors and development finance institutions to lend to us. We are asking them to own the assets alongside us," he said. 

He called on leaders and citizens of Africa to have faith in the continent and their countries countries. 

"As leaders, we must make use of the available resources to transform the continent," President Ruto stated.

He also rallied Africa to support African financial institutions and work with them to find solutions to local challenges. 

"We should first work with what we have before seeking support from others," President Ruto pointed out. 

Dangote Industries President and CEO Alhaji Aliko Dangote emphasised the need for African countries to eliminate barriers which limit free movement of people,  goods and services within the region.

Africa Finance Corporation President and CEO Samaila Zabairu called for deeper capital investments to transform the continent. 

Earlier, President Ruto held talks with Mr Dangote and Mr Zabairu on the sidelines of the United Nation's General Assembly meeting. They discussed the financing and final preparations for commencement of the  East African Refinery in Lamu.

"We are ready to break ground on the East Africa refinery, a transformative project that will enhance the region’s energy security, deepen local value addition, create jobs and advance our industrialisation agenda," President Ruto said. 

The President explained that the refinery will unlock new economic opportunities, strengthen regional supply chains and position East Africa as a competitive energy and industrial hub.

"We are focused on turning this landmark project into reality and delivering tangible benefits for the people of the region," he said.