Kenyans holding dollars and other foreign currencies could potentially face tougher rules, including a fine of up to Ksh1 million, if Parliament approves the proposed amendment to the Central Bank of Kenya (CBK) Act.The CBK(Amendment) Bill, 2026, sponsored by Rongai MP Paul Abuor, seeks to change how foreign exchange is handled and introduce new offences on illegal handling of foreign currencies.The National Assembly’s Finance Committee is currently scrutinising the proposed piece of legislation at the pre-publication stage before the whole House considers it.Abuor on Thursday, October 1, told the committee that the bill will address the hoarding of foreign currency by people and companies for speculative purposes, particularly ahead of general elections.“It is important to have a law in place which regulates the handling of foreign exchange to ensure that individuals or corporate entities do not hoard forex for speculation or other reasons,” Abuor stated.The MP argued that while people should retain the right to hold foreign currency, the law should outline consequences for hoarding money that should be circulating.Abuor further told lawmakers that foreign currency hoarding around election periods could create artificial shortages, consequently increasing the cost of foreign exchange in the country.However, the committee questioned the proposal, noting that similar foreign exchange controls were previously in place before being repealed to allow market forces to determine supply and demand.“What is your motivation to have it enacted once again?” Kitui Rural MP David Mboni asked during the committee's consideration of the proposed legislation.In response, Abuor maintained that the proposed regulations were necessary to address the impact of foreign currency hoarding, particularly during election cycles, when demand for forex could increase.The Bill seeks to amend the CBK Act to promote a stable foreign exchange market, with the sponsoring MP arguing that this would ultimately benefit the country’s economy.According to the proposal, a person found guilty of hoarding dollars or other foreign currencies could face a fine of up to Ksh1 million or up to 10 years in prison.
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