Thursday, October 5, 2023 – Central Organisation of Trade Union (COTU) Secretary General, Francis Atwoli, has criticised a proposed bill that will punish Kenyans hoarding foreign currencies worth more than Sh 1 million.
The Bill proposes stiff penalties to individuals and entities accumulating foreign currencies for speculative purposes, resulting in scarcity of foreign exchange.
The proposed Bill wants Kenyans to pay up to 15 percent of the value of dollars held in their custody for more than an allowed period of 45 days.
The sponsor of the proposed Bill, Rongo MP Paul Abuor, said the move seeks to combat the hoarding of the US dollar and to offer support to the Kenyan Shilling so that it does not slide further against foreign currencies.
“This bill is a retrogressive, repressive, and archaic piece of legislation,” Atwoli said in a statement.
The COTU boss further said that the bill contradicts the principles promoting economic advancement and investor-friendly policies, which are important for job generation and the liberties of workers.
He reiterated that Kenya has moved past the era of obligatory currency declarations for travellers.
“We firmly believe that Kenya has evolved beyond the era where individuals were required to declare their currencies when travelling in and out of the country,” he said.
Atwoli said if the Bill is enacted, it would signify a regression to colonial-era practices that curtailed personal freedoms and discouraged investments within the nation.
“Kenya has made significant strides in its economic development and international trade relations,” he said
The veteran trade unionist urged the Kenyan Parliament to consider enacting legislation that promotes the unchecked flow of capital, so long as individuals can verifiably account for it and ensure it isn’t tied to money laundering.
“We would like to encourage the parliament of Kenya to come up with legislation that encourages the free and unconditional flow of capital,” he stated.
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