Atwoli warns Treasury CS against following IMF conditionalities without caution

The Central Organization of Trade Unions (Kenya), COTU (K) has cautioned the newly appointed Treasury Cabinet Secretary against implementing IMF conditionalities in the economy without careful consideration.

COTU Secretary General Francis Atwoli has cautioned that blindly following IMF guidelines could increase Kenya's tax burden and spark societal unrest.

He decried how, in the past, blindly adopting the IMF's guidance has resulted in negative consequences for citizens and workers, as well as protests.

“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 said in a statement on Wednesday.

Atwoli proposed that avoiding the IMF is the best course of action. “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,” he said.

He emphasised that if CS John Mbadi rigidly follows all of the IMF's economic and financial adjustment recommendations, such an approach is likely to fail.

“We draw an important lesson from the regime of former President Hon. Mwai Kibaki, which approached IMF recommendations with a balanced perspective, ensuring that the welfare of the citizens remained a priority. It is the position of COTU (K) that if the new National Treasury Cabinet Secretary adopts a rigid approach and implements 100 per cent of the IMF's economic and finance adjustments advice, then such an approach will not succeed,” he said.

He argued that IMF conditionalities often involve measures that place undue financial strain on the citizenry, primarily through increased taxation and the so-called austerity measures.

“These actions not only lead to social unrest but also trigger widespread demonstrations as citizens grapple with the negative impacts on their livelihoods,” he warned.

The organisation emphasised that it remains committed to advocating policies that promote economic stability while ensuring the protection of workers' rights and the welfare of all Kenyans.