By Grace Gilo
The Central Organization of Trade Unions (Kenya), COTU (K) has warned the newly appointed National Treasury Cabinet Secretary, Hon. John Mbadi, regarding the potential repercussions of blindly adhering to the International Monetary Fund (IMF)’s conditionalities on Kenya’s economy.
Francis Atwoli, COTU’s Secretary General, expressed that uncritically following the IMF’s advice has historically resulted in adverse effects on the citizens and workers.
He cited former President Hon. Mwai Kibaki’s approach, which balanced IMF recommendations with the welfare of citizens as a priority.
“We draw an important lesson from the regime of former President Hon. Mwai Kibaki, which approached IMF recommendations with a balanced perspective, ensuring that the welfare of the citizens remained a priority,” read the statement from Atwoli in part.
COTU (K) asserted that if the new Cabinet Secretary adopts a rigid stance and implements the IMF’s economic and financial recommendations in their entirety, the strategy would unlikely yield positive results.
“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,” warned the Secretary General.
Atwoli further pointed out that the IMF’s conditionalities frequently entail measures that impose excessive financial strains on the citizenry, primarily through increased taxation and austerity measures. These policies not only lead to social unrest but also trigger widespread demonstrations as citizens struggle with the adverse effects on their livelihoods.
“The advice given by the IMF, if followed without adjustment to local contexts and needs, ultimately results in unrest, turmoil and thus social upheavals. COTU (K) warns against falling prey to tactics that would worsen the tax burden on Kenyans and create social upheavals,” COTU cautioned.
The organization urged CS Mbadi to approach IMF conditionalities with caution and a thorough understanding of their potential impact on ordinary Kenyans.
“The far we stay away from the IMF and its accomplices, the better for this country,” Atwoli said.