Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has cautioned Treasury Cabinet Secretary John Mbadi against implementing International Monetary Fund (IMF) conditions blindly.
In a statement on Wednesday, August 14, Atwoli said following IMF advice without scrutiny has resulted in adverse effects on Kenyans and workers in the past.
“COTU (K) warns against falling prey to tactics that would worsen the tax burden on Kenyans and create social upheavals.
We call upon the new National Treasury Cabinet Secretary to approach IMF conditionalities cautiously and with a deep understanding of their potential impact on ordinary Kenyans. In fact, the far we stay away from the IMF and its accomplices, the better for this country,” read the statement in part.
Atwoli noted that CS Mbadi should approach the IMF recommendations the same way former President Mwai Kibaki’s administration did with a balanced perspective and ensuring that the welfare of the citizens remained a priority.
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The COTU boss warned that if Mbadi adopts a rigid approach and implements 100 percent of the IMF’s economic and finance adjustments advice, the approach will not succeed.
Atwoli also warned that following IMF advice without adjustments can lead to social unrest in the country.
“IMF conditionalities often involve measures that place undue financial strain on the citizenry, primarily through increased taxation and the so-called austerity measures. These actions not only lead to social unrest but also trigger widespread demonstrations as citizens grapple with the negative impacts on their livelihoods,” Atwoli stated.
The COTU SG’s statement comes after CS Mbadi met the IMF Representative in Kenya, Selim Cakir on Wednesday morning at his office.
The Ministry of National Treasury in a statement after the meeting said IMF continues to play a crucial role in supporting Kenya's economic stability and development.
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