A Nairobi law firm has cautioned the Central Bank of Kenya (CBK) against plans to store part of Kenya’s gold reserves with the Bank of England, warning it could threaten national sovereignty and expose the country’s assets to foreign control.

 A Nairobi-based law firm has written to the Central Bank of Kenya (CBK) raising alarm over a proposal to store part of national gold reserves with the Bank of England. The firm warned that such a move could compromise the country’s economic sovereignty and expose its assets to foreign political influence.

In a letter dated October 23, and addressed to CBK Governor Dr. Kamau Thugge, Dahir, Affey & Associates LLP urged the Central Bank to immediately suspend all negotiations with the Bank of England pending a transparent national dialogue on the matter.

The firm, led by Managing Partner Abdulhakim Dahir Sheikh, said it was acting on behalf of concerned Kenyans worried that placing the country’s reserves under a foreign jurisdiction could make them vulnerable to asset freezes, sanctions, and external political pressures.

“The decision to vest a portion of our national wealth in a foreign jurisdiction, under the control of another state’s legal system, is one of the most consequential financial decisions a nation can make,” Dahir wrote, warning that Kenya risked falling into the same predicament as Venezuela, whose gold reserves in the UK were frozen during a diplomatic standoff.

Secrecy

The petition also raised questions over the transparency of the CBK’s dealings with the Bank of England, saying no details had been made public about who negotiated the agreement, the cost to taxpayers, or the protections securing Kenya’s ownership rights.

The firm described the lack of disclosure as a violation of the principles of public participation and accountability enshrined in the Constitution.

Instead of outsourcing gold storage abroad, the firm urged the government to establish a high-security bullion depository within Kenya, arguing that such a facility would safeguard national wealth, create jobs, and strengthen financial sovereignty.

It further called on the CBK to suspend talks with the Bank of England, publish all details of the proposed deal, and consider a domestic gold reserve facility as a strategic national investment.

“Kenya’s economic future must be built on self-reliance and prudent control of our assets. We cannot gamble our national security on the perceived stability of a foreign nation whose interests may not align with our own,” Dahir stated. Capital News