Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli on Wednesday August 14 warned new National Treasury CS John Mbadi against implementing the International Monetary Fund (IMF) conditions blindly.
In a statement, Atwoli said following the IMF’s advice without scrutiny has historically led to adverse effects on the citizenry and workers.
“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,” said Atwoli.
The COTU boss pointed out that former President Mwai Kibaki approached IMF recommendations with a balanced perspective, ensuring that the welfare of the citizens remained a priority.
Atwoli warned Mbadi that implementing 100% of the IMF’s economic and finance adjustments advice, then such an approach would not succeed.
“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.
“IMF conditionalities often involve measures that place undue financial strain on the citizenry, primarily through increased taxation and the so called austerity measures,” Atwoli stated.
Further, he warned that raising taxes would not only lead to social unrest but also trigger widespread demonstrations as citizens grapple with the negative impacts 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,” Atwoli added.
His remarks come after CS Mbadi on Wednesday met with the IMF Representative in Kenya, Selim Cakir.
