The Central Organization of Trade Unions (COTU) Secretary General, Francis Atwoli, has cautioned the newly appointed National Treasury Cabinet Secretary, John Mbadi, against blindly adhering to International Monetary Fund (IMF) conditions.
Atwoli expressed concern that the IMF’s conditionalities could have negative consequences for Kenya’s economy if implemented without careful consideration.
“The IMF’s advice has previously led to detrimental effects on citizens when followed without scrutiny,” Atwoli warned.
He emphasized that if the new National Treasury CS strictly implements 100% of the IMF’s economic and financial adjustments, it would likely fail.
“We urge the new National Treasury CS to handle IMF conditions with caution and a deep understanding of their potential impact on ordinary Kenyans. In fact, the further we distance ourselves from the IMF and its associates, the better off this country will be,” he stated.
Atwoli’s remarks follow a meeting between CS Mbadi and IMF Representative Selim Cakir on Wednesday.
The COTU boss also cautioned against policies that could increase the tax burden on Kenyans and lead to social unrest.
“IMF recommendations, if applied without considering the local context, often result in unrest, turmoil, and eventually social upheaval,” he warned.
Atwoli reaffirmed COTU’s commitment to advocating for policies that ensure economic stability while protecting workers’ rights and the welfare of Kenyans.
The IMF has often been criticized for contributing to the high cost of living in Kenya. President William Ruto chose to work with the IMF to help stabilize the economy after taking office in 2022.