Central Organization of Trade Unions-Kenya (COTU-K) has condemned a proposed bill that seeks to fine or imprison people hoarding foreign currency beyond 45 days. The workers union said the bill is retrogressive, archaic and repressive.
COTU Secretary General Francis Atwoli said the bill goes against the principles of economic progress and investor-friendly policies. He said it will affect the freedom of workers in Kenya.
“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. The proposed Forex Hoarding Bill, 2023, if passed, would be a step backward, reminiscent of colonial-era practices that stifled individuals freedoms and intimidated investment in the country,” Atwoli said.
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Additionally, Atwoli said Kenya has made significant steps in its economic development giving birth to startups striving to become unicorns. He appealed to the government, more so the parliament, to foster a conducive environment for investment and economic growth.
“COTU believes that punitive measures like those proposed in the Forex Hoarding Bill, 2023, are detrimental to investor confidence. Such measures discourage individuals and businesses from participating in international trade and currency exchange,” Atwoli added.
The proposed bill is sponsored by Rongo MP Paul Abuor and it seeks to criminalize the hoarding of U.S. dollars in an effort to address the continued depreciation of the shilling against stronger currencies. The MP proposed a fine not exceeding KES 1 million or imprisonment for a term not exceeding 10 years for individuals found guilty of hoarding foreign currency beyond their reasonable needs.
On the other hand, entities found guilty of currency hoarding will pay a fine not exceeding KES 10 million or face revocation of relevant operating licenses.
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