The Central Organization of Trade Unions (COTU) secretary general Francis Atwoli has advised Treasury cabinet secretary (CS) John Mbadi to be careful when dealing with IMF loans.
In a press statement dated August 14, 2024, Atwoli explained that some IMF loans come with conditions that can affect the country’s economy negatively.
“COTU (K) wishes to strongly caution the new National Treasury Cabinet Secretary, Hon. John Mbadi, over the potential implications of the IMF’s conditions on our country’s economy,” read part of Atwoli’s statement.
According to Atwoli, 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,” Atwoli explained.
The COTU boss raised concerns that if the new National Treasury CS adopts a rigid approach and implements 100% of the IMF’s economic and finance adjustments advice, then such an approach will not succeed.
He added that IMF conditionalities often involve measures that place undue financial strain on the citizenry, primarily through increased taxation and austerity measures.
Atwoli emphasized that IMF recommendations and actions may 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,” read part of COTU statement.
The workers’ union boss maintained that it’s better for Kenya to stay away from the IMF and its accomplices.
Atwoli’s remarks emerged a day after former Public Service Cabinet Secretary Moses Kuria urged CS Mbadi to borrow more money from the IMF.
Speaking during an interview with Citizen TV on Monday August 12, Moses Kuria stressed the need for capital injection from IMF for the shilling to remain stable against the US dollar.
According to Kuria, Kenya’s economy is not in good condition, especially after the rejection and withdrawal of the controversial Finance Bill 2024.
He explained that Kenya may continue relying heavily on international financial institutions like the IMF and the World Bank.
“If the IMF does not come through by the end of this month, in another 19 days, this shilling might hit 170, the dollar might hit 170 to the shilling. On Sunday when I go to church I will say a prayer for John Mbadi to hope that IMF stays engaged on this,” said Kuria.
