MP proposes Bill seeking to criminalize dollar hoarding in Kenya

Rongo Member of Parliament (MP) Paul Abour has proposed a Bill seeking to criminalize the hoarding of U.S. dollars in an effort to address the continued depreciation of the Kenyan shilling against the superpower currency.

The proposed law, The Forex Hoarding Criminalization Act 2023, seeks to control the quantity of dollars Kenyans can purchase and the period they can hold on to the cash.

“We can’t afford the luxury of people buying dollars and keeping them in their houses for speculation purposes. Even if you have the freedom to buy and sell as you wish, you can’t do it to the detriment of the common mwananchi,” Abour said.

The legislator claims that wealthy Kenyans have been stockpiling the U.S. currency since the 2022 General Elections, adding that Central Bank of Kenya statistics show that local lenders are likewise holding Ksh.1.2 trillion in dollars.

“We are not saying that you shouldn't be allowed to buy dollars. If you do buy them, you must use them within a specified period. If you don't you should either convert the cash into Kenyan shillings, use it to import products or pay a 15% tax, on the amount being held, to the government,” he said.

The Bill will also have provisions that will compensate whistleblowers who report instances of dollar hoarding.

“If you might be having information where someone is hiding dollars for speculation purposes and you report to the authorities, you will be entitled to 10% of the money being hoarded," adds the MP.

If the Bill is assented into law, it proposes a 90-day amnesty to allow those with the dollars in their accounts or homes to convert the money into Kenya shillings lest they attract a 15% tax of the amount being held.