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The Central Organization of Trade Unions (Kenya), COTU (K), has issued a stern warning to the newly appointed National Treasury Cabinet Secretary, Hon. John Mbadi, urging him to carefully scrutinize and adapt the International Monetary Fund’s (IMF) conditionalities before implementing them.
In a statement released yesterday, COTU (K) expressed deep concern over the potential adverse effects that could arise from blindly following IMF directives. The union emphasized the importance of learning from past experiences, particularly the approach taken by former President Mwai Kibaki’s administration, which prioritized the welfare of citizens while considering IMF recommendations.
COTU (K) highlighted that rigidly adhering to 100% of the IMF’s economic and financial adjustments could have detrimental consequences for the Kenyan economy and its people. The union noted that IMF conditionalities often involve austerity measures and increased taxation, which can place significant financial strain on the population. These measures, according to COTU (K), have historically led to social unrest and widespread demonstrations as citizens struggle with the negative impacts on their livelihoods.
The statement urged Hon. Mbadi to approach the IMF’s advice with caution, considering the local context and the potential impact on ordinary Kenyans. COTU (K) warned against adopting policies that would exacerbate the tax burden on Kenyans and create social upheavals.
“The far we stay away from the IMF and its accomplices, the better for this country,” the statement read, reflecting COTU (K)’s skepticism towards the IMF’s involvement in Kenya’s economic affairs.
COTU (K) reiterated its commitment to advocating for policies that promote economic stability while safeguarding workers’ rights and the welfare of all Kenyans. The union called on the new Treasury CS to prioritize the needs of the Kenyan people in his decision-making process, ensuring that any economic reforms are tailored to the country’s unique circumstances.
As Hon. John Mbadi assumes his new role, all eyes will be on the strategies he adopts in managing Kenya’s economy, especially in relation to the IMF’s influence. The caution from COTU (K) serves as a reminder of the delicate balance required in navigating international financial advice while maintaining the socio-economic stability of the nation.
