The Central Organization of Trade Unions (Kenya) (COTU-K) has issued a warning to the newly appointed National Treasury Cabinet Secretary, John Mbadi, urging him to exercise caution when implementing the International Monetary Fund's (IMF) economic recommendations.
In a press statement released on Wednesday, COTU (K) Secretary General Francis Atwoli expressed concerns about the potential negative consequences that could arise from strictly adhering to IMF conditions. He highlighted the risk of such actions harming Kenya's economy, particularly in terms of the impact on citizens and workers' livelihoods.
Atwoli referenced past experiences to underscore his point, noting that previous governments, particularly under former President Mwai Kibaki, had approached IMF recommendations with a balanced perspective. During Kibaki's tenure, the government prioritized the welfare of citizens while engaging with the IMF, a strategy that COTU (K) believes should be a guiding principle for the current administration.
COTU (K) warned that fully implementing the IMF’s economic and financial adjustments without considering Kenya's unique context could lead to failure. "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.
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The organization also pointed out that IMF conditionalities often involve policies that disproportionately burden citizens, such as increased taxation and austerity measures. COTU (K) cautioned that these measures could trigger social unrest and widespread protests as Kenyans grapple with the adverse effects on their daily lives.
Furthermore, the trade union emphasized the dangers of a rigid application of IMF advice, warning that it could exacerbate the already heavy tax burden on struggling Kenyans and potentially lead to social upheaval. COTU (K) urged the National Treasury to carefully consider the potential impact of IMF recommendations on ordinary citizens and to avoid adopting strategies that could worsen the economic situation.
COTU (K) also advocated for maintaining a cautious distance from the IMF and its policies, arguing that such an approach would be in the best interest of the country. The organization stressed the importance of prioritizing the welfare of Kenyan citizens over international financial advice.
