The Central Organisation of Trade Unions has opposed the proposed Forex Hoarding Bill, 2023.
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 per cent 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,” Cotu said in a statement.
Cotu 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.
The organisation 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,” Cotu.
They 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.
Cotu said that Kenya has made substantial steps in economic progress and global trade relations.
“Kenya has made significant strides in its economic development and international trade relations,” they said.
The Trade Union 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,” COTU told the government.
They noted that the Kenyan banking system allows any worker or investor to maintain a multi-currency account capable of housing various major trading currencies.
The organisation advocated that Kenya should persist in adopting progressive policies that stimulate investments, employment opportunities and foster well-being for all citizens.
Cotu expressed optimism that Parliament will dismiss the bill.
"We hope and trust that Parliament will reject this archaic and retrogressive bill in totality,"