Atwoli Cautions Treasury CS Mbadi on Blind Implementation of IMF Conditions

The Central Organization of Trade Unions (Kenya) COTU (K) has issued a strong warning to the newly appointed National Treasury Cabinet Secretary, urging caution in the implementation of International Monetary Fund (IMF) conditions. COTU (K) Secretary General Francis Atwoli emphasized the need for a thoughtful evaluation of IMF directives, cautioning against a blind adherence that could potentially harm ordinary Kenyans and disrupt economic stability.

In a statement released on Wednesday, Atwoli expressed concern about the negative impact that rigidly following IMF recommendations could have on the Kenyan populace. He highlighted that previous experiences have shown that IMF conditions often result in measures such as increased taxation and austerity policies that disproportionately affect the lower and middle-income citizens.

“It is crucial for the new National Treasury Cabinet Secretary to critically assess IMF conditionalities rather than adopting a rigid approach that implements these measures without regard to their broader implications,” Atwoli said. He argued that history has demonstrated that such blind adherence to IMF recommendations has often led to adverse consequences, including social unrest and economic hardships for the general public.

Atwoli specifically pointed out that IMF conditionalities frequently include financial adjustments that place an undue burden on ordinary citizens. These adjustments typically involve raising taxes and enforcing austerity measures that can lead to widespread demonstrations and social discontent. According to Atwoli, these measures do not only strain the financial resources of Kenyans but also provoke significant public backlash, which in turn undermines social cohesion and economic stability.

The COTU (K) Secretary General stressed that a more nuanced approach is needed, one that considers the unique economic and social context of Kenya. Implementing IMF recommendations without adaptation to local conditions could result in economic turmoil and further exacerbate the already challenging living conditions for many Kenyans.

Atwoli urged CS Mbadi to be particularly cautious about any measures that would increase the tax burden on citizens. He warned that such actions could trigger social unrest and erode public trust in the government’s ability to manage the economy effectively. “We call upon the new National Treasury Cabinet Secretary to approach IMF conditionalities with a deep understanding of their potential impact on ordinary Kenyans. The farther we stay away from the IMF and its conditions, the better it will be for this country,” Atwoli asserted.

COTU (K) reaffirmed its commitment to advocating for economic policies that promote stability while protecting workers’ rights and the welfare of all Kenyans. Atwoli emphasized that COTU (K) will continue to push for policies that balance economic growth with social equity, ensuring that the needs and concerns of the working population are not overlooked in the pursuit of financial adjustments or international assistance.

The cautionary message from COTU (K) reflects broader concerns about the implications of international financial policies on domestic economies. As Kenya navigates its economic challenges and interacts with global financial institutions, the need for a balanced approach that safeguards the interests of ordinary citizens while pursuing necessary economic reforms remains a critical consideration.