Atwoli, the history of countries following the IMF’s advice without scrutiny has led to adverse effects on the citizenry and workers.
Central Organization of Trade Unions (COTU-K) Secretary General Francis Atwoli has advised Treasury Cabinet Secretary, John Mbadi to exercise caution in terms of dealing with the International Monetary Fund (IMF).
In a statement, the firebrand unionist warned Mbadi regarding the potential implications of the IMF’s conditionalities on the economy of countries.
According to Atwoli, the history of countries following the IMF’s advice without scrutiny has led to adverse effects on the citizenry and workers.
“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,” he stated in part.
President William Ruto with COTU Secretary General Francis Atwoli during the 58th Labour Day Celebration at Uhuru Gardens on May 1, 2023. /PCS
Taking the position of COTU Kenya, Atwoli urged Mbadi not to adopt a rigid approach and implement 100 percent of the IMF’s economic and finance adjustments advice, noting that such an approach will not succeed.
He expressed 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.
“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.
“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 farther we stay away from the IMF and its accomplices, the better for this country,” he added.
Atwoli’s statement comes after CS Mbadi met the IMF Representative in Kenya, Selim Cakir on Wednesday morning at his office. The Ministry of National Treasury in a statement after the meeting said IMF continues to play a crucial role in supporting Kenya’s economic stability and development.
Despite his vocal warnings about the IMF, Atwoli has remained silent on Mbadi’s broader economic reforms, particularly the CS’s plans to clean up the government’s bloated payroll and carry out tax reforms.
These reforms are part of a broader effort to cut spending and bolster the government’s finances—a critical issue for a country that has been rocked by deadly protests over the last two months.
Kenya faces gaping budget deficits and is under pressure to boost revenue collection to meet conditions set by the IMF for a lending programme. Mbadi has been clear in his intentions, stating that anyone obstructing reform efforts should “give way.”
This includes a long-delayed project to link government payrolls with technology systems, aimed at eliminating ghost workers and pensioners.
