NAIROBI, Kenya – Barely one week after assuming office, the Central Organisation of Trade Unions (COTU) has put the new National Treasury Cabinet Secretary, John Mbadi, on the spot over the potential implications of the International Monetary Fund’s (IMF) conditionalities on the Kenyan economy.
In a statement seen by Y News, COTU claims that historically, following the IMF’s advice without scrutiny has adversely affected the citizenry and workers.
“We draw an important lesson from the regime of former president Mwai Kibaki (now deceased), which approached IMF recommendations with a balanced perspective, ensuring that the welfare of the citizens remained a priority,” reads the statement signed by COTU Secretary-General Francis Atwoli.
According to Atwoli, COTU’s position is that if Mbadi adopts a rigid approach and implements 100% of the IMF’s economic and finance adjustments advice, such an approach will not succeed.
“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 COTU boss observed.
What COTU thinks about IMF’s advice to the Kenyan gov’t
Atwoli reiterated that the advice the IMF gave, if followed without adjustment to local contexts and needs, ultimately results in unrest, turmoil and thus social upheavals.
“COTU warns against falling prey to tactics that would worsen the tax burden on Kenyans and create social upheavals,” said Atwoli while calling 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,” explained Atwoli, noting that COTU remains committed to advocating for policies that promote economic stability while ensuring the protection of workers’ rights and the welfare of all Kenyans.
Atwoli’s remarks came just a few hours after CS Mbadi and his principal secretary, Chris Kiptoo, received a courtesy call from Selim Cakir, the IMF Representative in Kenya.
What CS John Mbadi thinks about IMF programs
CS Mbadi, the immediate former national chairman of the Orange Democratic Movement (ODM), noted during his vetting that he had examined the conditionalities and supported IMF programs.
“The IMF never goes to a country by itself; we invite them, and we have an agreement with them that we have to mobilise revenue,” Mbadi said on August 3, 2024.
However, on the night of Tuesday, August 13, while appearing on Citizen TV, Safina Party leader Jimi Wanjigi warned that should CS Mbadi sign the gazette notice accepting odious debt, he would have fallen into the trap.
“If I were him, I’d be cautious about what the National Treasury officials ask him to sign,” said Wanjigi.
Mbadi is among opposition leaders who recently joined President William Ruto’s administration, which has been praised for forming a broad-based government that transcends political divides.
