Floods wreaks havoc as Loss and Damage Fund takes shape

Hundreds of people have been killed while thousand others displaced due to the ongoing floods caused by El Nino. In the Horn of Africa unbearable rains are causing untold suffering a few months after a long drought.

In Kenya at least 146 people have been killed by floods and 90,000 others displaced. Counties that have been hit the most includes Garissa, Madera, Wajir, and Tana River.

The neighboring Somalia has been affected as well, with 96 people killed by floods and 700,000 others displaced.

These floods has caused serious damage to houses and infrastructure like roads and bridges. Mandera residents have seen their houses submerged. The Nairobi-Garissa road has been wrecked by floods making it impossible for aid to reach the affected areas. 

This happens in tandem with the ongoing COP28 climate summit in Dubai where world leaders meets to discuss on how to combat climate crisis. The conference comes at the back-drop of pull and push to reduce the use of fossil fuel.

Developing countries are facing severe weather events that threatens the livelihoods of their citizens even though they are the least polluters. Climate crisis are wreaking havoc in their economies.

Loss and Damage Fund

The Loss and Damage Fund which has been championed for by developing countries comes in handy to salvage developing countries. However, the fund however falls short as the effects of climate are far and wide. This fund aims to provide financial support nations most hit by climate change.

Countries who’ve pledged to contribute to the Loss and Damage Fund includes Japan – Ksh1.5, United States – Ksh2.7 billion, Germany – Ksh15.3 billion, UK – Ksh6.7 billion and United Arab Emirates which has contributed Ksh15.3 billion to the fund.

This funds likely domiciled at the World Bank even as concerns are being raised about it. If the fund is domiciled in the World Bank, the donor counties including US and UK will have influence in the fund.

Restructuring financial architecture

President William Ruto Kenyan president has on several occasions called for restructuring of global finance infrastructure arguing that it’s disadvantageous to developing countries. While speaking in Arusha Tanzania he said that current financial architecture was created before the advent of climate change.

“It’s necessary for us to work on climate financing. How do we reform the international financial architecture that was fashioned before the advent of climate change,” Ruto said.

Ruto said it will not possible for African countries to manage the requirements of budgets and at the time when climate change is causing problem which also demands money to deal with.

“if we are going to use the same financial instruments that we have used, designed for a different purpose at a different time, we will not be able to manage the competing financial requirements of our budgets especially in the context of what we have to spend on managing the climate change,” he said.