A new bill aimed at addressing the US dollar shortage in the country proposes strict penalties for those found hoarding American currency. The bill, introduced by Member of Parliament Paul Abuor of Rongo, suggests harsh punishments for individuals found concealing US dollars for more than 45 days.\
The Foreign Currency Hoarding Control Bill of 2023 recommends that those caught hoarding dollars be fined an amount equal to 15% of the value of the currency in their possession. Furthermore, the bill stipulates that individuals convicted of hoarding dollars for more than 45 days could face a fine of one million Kenyan shillings or a ten-year prison sentence.
Mr. Abuor asserts that the primary goal of the bill is to target currency hoarders, thereby bolstering the government’s efforts to stabilize the declining value of the Kenyan shilling against the US dollar and other foreign currencies.
Financial institutions found involved in these offenses could face fines of ten million Kenyan shillings and have their licenses revoked.
“We cannot continue to watch the value of the shilling plummet against the dollar without taking any action. The truth is, there are people hoarding dollars, which poses challenges to the current economic situation,” he explained.
This move comes shortly after Tanzania initiated the purchase of gold from its citizens in an effort to bolster its US dollar reserves.
