COTU warns Treasury CS Mbadi against rigid IMF conditionalities

In a press statement issued on Wednesday, COTU (K) Secretary General Francis Atwoli expressed concern about the potential negative impact of strict adherence to IMF conditions on Kenya's economy, particularly on citizens' and workers' livelihoods.

Atwoli pointed out that past experiences have shown the detrimental effects of uncritically following IMF advice. 

The organisation cited former President Mwai Kibaki's regime, which took a balanced approach to IMF recommendations while keeping citizens' welfare as a top priority.

This historical context, COTU (K) argues, serves as a crucial lesson in navigating the complexities of international financial advice.

According to COTU (K), implementing 100% of the IMF’s economic and financial adjustments without considering the local context and needs would likely result in 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 said on Wednesday. 

The organization highlighted that IMF conditionalities often involve measures that disproportionately burden citizens through increased taxation and austerity measures. 

These policies, COTU (K) warned, could lead to social unrest and widespread demonstrations as Kenyans struggle with the adverse effects on their livelihoods.

The trade union emphasized that the rigid application of IMF advice has the potential to create social upheaval and exacerbate the tax burden on already struggling Kenyans. 

COTU (K) cautioned the National Treasury against adopting tactics that could worsen the economic situation and urged Mbadi to approach IMF recommendations with a deep understanding of their potential impact on ordinary citizens.

COTU (K) further advocated for maintaining a distance from the IMF and its policies, asserting that doing so would be in the best interest of the country.