The Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli has called out the government over what he terms as irresponsible borrowing, saying it is plunging the country into a debt hole.
Atwoli challenged the government to seek alternative lenders and development partners, saying that the conditions set out in International Monetary Fund (IMF) and World Bank loans are making life unbearable for Kenyans.
He accused the Central Bank of Kenya (CBK) of collaborating with the lenders to intentionally devalue the Kenya Shilling, further driving the cost of living to astronomical levels.
“Put a stop on the depreciation of the Shilling, it does not reflect the actual economic activities on the ground unless they are answering to IMF and the World Bank and this will be dangerous to the Republic of Kenya,” Atwoli said on Wednesday.
“When our Shilling goes down the way it’s going, rates go up…everything is going to go up and the general public is going to stand up against the government and it will cause havoc, chaos and confusion. We will not have a country.”
While releasing a report titled ‘Turning The Tide On Kenya’s Economy: Recovery and Prosperity Through The Workers’ Lenses’, Atwoli pointed that current taxation policies have negatively impacted the Kenyan employees and urged the government to urgently restore investor confidence as a solution to job creation.
He also questioned the government’s wisdom of borrowing, saying the government cannot get out of a mess created by unmitigated borrowing which he says has exposed Kenyans to over-taxation, which is unsustainable.
“We must also ask our economists to appropriately advise the government that over-borrowing is dangerous. When people are highly taxed they resort to engaging in black market tactics like PayBills are no longer being used in Kenya. How will the government realise revenue to run it? It must review that area of taxation,” he urged.
The COTU boss also proposed that the government should embrace stakeholder engagement across all levels and fully implement the outcomes of such engagements.
The unionist further called on the government to come up with an urgent solution, to lower the cost of living.
Mary Muoki, “COTU Boss Francis Atwoli Calls out Gov’t for Irresponsible Borrowing,” Citizen Digital (Citizen Digital, January 24, 2024), https://www.citizen.digital/news/cotu-boss-francis-atwoli-calls-out-govt-for-irresponsible-borrowing-n335446.
