Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has issued a stern warning to John Mbadi, the new National Treasury Cabinet Secretary, about implementing International Monetary Fund (IMF) conditions without careful consideration. Atwoli cautioned that blindly adhering to the IMF’s directives could have detrimental effects on Kenya’s economy.
Impact of IMF Conditionalities
Atwoli expressed concerns that IMF conditionalities could negatively impact the country’s economic stability. He emphasized that past experiences have shown that uncritically following IMF advice can lead to adverse outcomes for citizens.
“It is the position of COTU (K) that if the new National Treasury Cabinet Secretary adopts a rigid approach and implements 100% of the IMF’s economic and finance adjustments advice, then such an approach will not succeed,” Atwoli stated. He urged for a cautious approach, advising that the IMF’s recommendations should be assessed thoroughly for their potential impact on ordinary Kenyans.
Call for Cautious Implementation
Atwoli urged CS Mbadi to approach IMF conditionalities with care and a deep understanding of their potential consequences. He argued that distancing Kenya from IMF pressures could be beneficial for the country. Atwoli also warned against measures that could increase the tax burden on Kenyans or lead to social upheaval.
“The advice given by the IMF, if followed without adjustment to local contexts and needs, ultimately results in unrest, turmoil, and thus social upheavals,” he said.
COTU’s Commitment and Historical Context
Atwoli reassured that COTU remains committed to advocating for policies that foster economic stability while protecting workers’ rights and the welfare of all Kenyans. His remarks come in the wake of CS Mbadi’s recent meeting with IMF Representative in Kenya, Selim Cakir. The IMF has been frequently criticized for contributing to the high cost of living in Kenya. President William Ruto chose to engage with the IMF in an effort to stabilize the economy following his election in 2022.
