In September the KNU's Chairman, Mutu Say Poe, walked out of a meeting of the UNFC held in Chiang Mai, ostensibly because the UNFC's structure violated the KNU founder Saw Ba U Gyi's famous 5 principles. An explanation that did not sit well with many Karen activists who in recent weeks have heavily criticized Mutu Say Poe's decision to leave the UNFC.

Others in the KNU most notably those from the group's 5th brigade as well as the KNU's former vice president David Thackabaw and the group's former General Secretary, Zipporah Sein, are known to favour staying in the UNFC.

Mutu Say Poe and his supporters in the group are known to have major differences with the UNFC over the alliance's cautious approach to signing the proposed national ceasefire which President Thein Sein and his chief negotiator Minister Aung Min have been pushing Burma's various armed groups to sign before the end of the year.

The Kachin Independence Organization (KIO), is the largest member of the UNFC and the KIO's leadership have been strong supporters of the alliance. The ongoing conflict in Kachin state between the Burma's military and the KIO has been a major focus for the UNFC which also includes the New Mon State Part, the Pa-O National Organization, the Chin National Front, the Karenni National Progressive Party (KNPP), the Shan State Army-North (SSPP) and several smaller organizations.

The KNU’s decision to withdraw was confirmed during a 6 day long special emergency meeting of the group's senior leadership held from 23rd to 29th October. In addition to discussing the future of the KNU in the UNFC, the KNU leadership discussed the possibility of forming a new alliance, the Kawthoolei Armed Forces (KAF), which would consist of the KNU and the various other Karen armed factions that previously split from the KNU. A final decision on this equally controversial issue was left to be dealt with next year.

A statement issued by the KNU following last week's meeting claimed that the group will continue to cooperate with UNFC for the purpose of achieving political goals. “We always work together with the UNFC even though there are different opinions. There will be compromises with each other and we will focus on the unity of all ethnic armed groups,” the KNU’s CSC member Pado Aung Maw Aye told the Kachin News Group.

Col. Hkun Ukka, No.1 joint general secretary of UNFC told the Kachin News Group that there are no hard feelings between the UNFC and their former member group the KNU. “We understand their decision,” he said. “Every one will accept it if they (KNU) become practical when cooperating with others,” he said.