Kenya: COTU (K) Opposes Retrogressive Forex Hoarding Bill, Cites Economic Setback

5 October 2023
Capital FM (Nairobi)
By Bruhan Makong

Nairobi — The Central Organization of Trade Unions (Kenya), COTU (K), has vehemently opposed the proposed Forex Hoarding Bill, 2023, terming it retrogressive and potentially harmful to the nation's economic progress.

COTU Secretary General Francis Atwoli expressed deep concern that if the bill becomes law, it would signify a significant step backward for the country.

He said the adoption of the bill would resemble colonial-era practices that "stifled individual freedoms and intimidated investment in the country." He described the bill, which seeks to penalize individuals for 'hoarding' foreign currency beyond 45 days, as "retrogressive, repressive, and archaic legislation" contrary to principles supporting economic advancement, job creation, and worker freedom.

The labour organization underlined its belief in Kenya's economic evolution, citing progress in international trade relations and the emergence of numerous multi-millionaires and start-ups as evidence of the entrepreneurial spirit and innovation of Kenyans. In this dynamic and competitive environment, Atwoli emphasized the need for a legislative framework that encourages investment and economic growth.

"If anything, COTU (K) would like to encourage the Kenyan parliament to develop legislation that fosters the free and unconditional flow of capital, provided individuals can account for the capital and it is not linked to money laundering," Atwoli stated in a statement issued Thursday.

He further highlighted the flexibility of the Kenyan banking system, which allows workers and investors to maintain multi-currency accounts capable of holding a variety of global trading currencies, including dollars, euros, and pounds. Atwoli warned that punitive measures such as those proposed in the Forex Hoarding Bill, 2023, could seriously dent investor confidence.

"These measures discourage individuals and businesses from participating in international trade and currency exchange," he added. Atwoli stressed the importance of facilitating the free flow of capital and promoting an open, flexible, and investor-friendly regulatory environment.

Read the original article on Capital FM.

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