The Central Organization of Trade Unions (Kenya), COTU, has cautioned the newly appointed Treasury Cabinet Secretary, John Mbadi against a potential dalliance with IMF.
COTU Secretary General Francis Atwoli observed that an agreement with the Monetary Fund without a proper scrutiny of the conditionalities would lead to dire economic consequences.
Earlier, CS Mbadi and PS Chris Kiptoo had met IMF's representative to Kenya Selim Cakir, a development that sparked outrage from multiple Kenyans and now the workers union.
"COTU 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. Historically, following the IMF's advice without scrutiny has led to adverse effects on the citizenry and workers," Atwoli said in a statement.
Atwoli urged the Treasury to approach the IMF recommendations with an open mind that will ensure the interests and welfare of Kenyan citizens remain a priority.
He further stated that inclusion of IMF's terms into the county's economic development plan have proven to be futile and have on multiple times been rejected by the masses. According to the COTU secretary general, IMF's measures often lead to over taxation of citizens, aggravating unrest and slowed development.
"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."
He added, "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."
In a bid to promote economic stability, Atwoli called on the CS to disassociate himself with the IMF and save Kenya from uncertainties that comes with it.
"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 far we stay away from the IMF and its accomplices, the better for this country," he said.
However, during his vetting, CS Mbadi had hinted on working with IMF saying, “IMF never invites themselves to a country, we invite them and we have agreed with them that we must do revenue mobilisation.