Francis Atwoli Warns CS Mbadi Over IMF
Central Organization of Trade Unions (COTU-K) Secretary General Francis Atwoli has issued a stern warning to John Mbadi, the newly appointed Treasury Cabinet Secretary, advising him to exercise caution in his interactions with the International Monetary Fund (IMF).
Atwoli warned that adhering unconditionally to IMF recommendations could worsen the financial difficulties faced by ordinary Kenyans.
This cautionary note follows a meeting on August 14 between Mbadi and the IMF Representative in Kenya, Selim Cakir.
The Ministry of Finance and National Treasury confirmed on X (formerly Twitter) that this meeting occurred in advance of the expected IMF disbursement of over Ksh181 billion.
Atwoli emphasized that such financial support often comes with conditions that could have severe economic repercussions for Kenya.
He referenced historical examples, stating, “Ignoring the IMF’s advice with due consideration has led to negative impacts on the population and workers.” He compared this to the approach taken by former President Mwai Kibaki, who carefully balanced IMF recommendations with the needs of Kenyan citizens.
Atwoli underscored the importance of maintaining this balance to ensure economic policies do not become a burden on the people.
The seasoned trade union leader also warned that IMF-imposed conditions frequently involve stringent austerity measures, such as higher taxes, which could lead to widespread social unrest.
“IMF conditions often entail severe financial pressures on citizens through increased taxes and austerity measures,” Atwoli said.
He stressed that these measures not only provoke social unrest but also spark protests as people struggle with the adverse effects on their livelihoods.
In his advice to Mbadi, Atwoli urged the new Treasury CS to carefully evaluate IMF conditions and their potential impact on ordinary Kenyans.
ALSO READ:
- How not to make a mistake when choosing the best bookmaker in Kenya
- Understanding Gatwiri’s Cause of Death: Unraveling Positional Asphyxiation
- KRA Rules Out Tax Relief on SHIF Deductions
- Understanding Why Married Women Cheat: Common Reasons Behind Infidelity
- Violence Erupts in Mozambique: Three Killed, 66 Injured in Protests Over Disputed Election
He highlighted, “The more we distance ourselves from the IMF and its associates, the better it will be for this country.”
Although Atwoli has strongly criticized IMF policies, he has yet to comment on Mbadi’s broader economic reform plans, including efforts to address the government’s excessive payroll and tax reform initiatives.
These reforms are part of a larger strategy to reduce government spending and improve financial stability—an urgent need given recent deadly protests.
Kenya faces significant budget deficits and is under pressure to increase revenue to fulfill IMF conditions for a lending program. Mbadi has made it clear that any opposition to these reform efforts should step aside.
This includes a delayed project to integrate government payrolls with technology systems to remove ghost workers and pensioners.
Mbadi has also announced plans to accelerate reforms at the Kenya Revenue Authority (KRA), which handles tax collection.
He pointed out that a modest increase in the revenue-to-GDP ratio could yield an additional Ksh400 billion.
Continuing his predecessor’s tax amnesty program, Mbadi reported that the initiative, which allows overdue tax payments without penalties, has already brought in Ksh43 billion.
Mbadi believes that these strategies are crucial for stabilizing the nation’s finances and meeting the IMF’s rigorous demands.
Francis Atwoli Warns CS Mbadi Over IMF
