Atwoli cautions Mbadi against implementing IMF conditionalities blindly

The Central Organization of Trade Unions -Kenya (COTU) Secretary General Francis Atwoli has cautioned the newly appointed National Treasury Cabinet Secretary John Mbadi against implementing the International Monetary Fund (IMF)’s conditionalities on the country’s economy blindly.

In a statement dated August 14, 2024, Atwoli disclosed that IMF conditionalities often involve measures that place unwarranted financial burdens through increased taxation.

He added that IMF’s actions not only lead to social unrest but also trigger negative impacts on ordinary citizens’ livelihoods by worsening the tax burden.

“The Central Organization of Trade Unions (Kenya), COTU (K) wishes to strongly caution the new National Treasury Cabinet Secretary, Hon. John Mbadi, over the potential implications of the IMF’s conditionalities on our country’s economy,” Atwoli said.

“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.”

Atwoli further advised Mbadi to approach IMF conditionalities cautiously adding that the further Kenya says from the monetary fund the better.

“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. 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 stated.

“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. The farther we stay away from the IMF and its accomplices, the better for this country.”

Reminiscing the former President the late Mwai Kibaki’s regime, the COTU boss said that the late president approached the monetary fund recommendations cautiously ensuring the welfare of citizens remained a priority.

“Historically, 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,” the COTU boss added.

“COTU-K remains committed to advocating for policies that promote economic stability
while ensuring the protection of workers’ rights and the welfare of all Kenyans.”

NEW TREASURY CABINET SECRETARY, HON. JOHN MBADI, SHOULD NOT IMPLEMENT IMF CONDITIONALITIES BLINDLY

The Central Organization of Trade Unions (Kenya), COTU (K) wishes to strongly caution the new National Treasury Cabinet Secretary, Hon. John Mbadi, over the potential implications… pic.twitter.com/B0caeZLdbN

— Francis Atwoli NOM (DZA), CBS, EBS, MBS. (@AtwoliDza) August 14, 2024

Cakir meeting with Mbadi

On Wednesday, August 14, 2024, the IMF Representative in Kenya Selim Cakir, paid a courtesy call to Treasury CS as the monetary fund continues to play a crucial role in supporting Kenya’s economic stability and development.

The IMF Representative in Kenya, Mr. Selim Cakir, @cakir paid a courtesy call to Treasury CS @CS_HonMbadi, @Kiptoock this morning. The IMF continues to play a crucial role in supporting Kenya's economic stability and development. @IMFNews pic.twitter.com/TbUZRX0xLP

— The National Treasury & Economic Planning (@KeTreasury) August 14, 2024