A Kenyan lawyer, Abdulhakim Dahir, has urged the Central Bank of Kenya (CBK) to immediately suspend talks with the Bank of England (BoE) regarding plans to store the country’s gold reserves in the United Kingdom. In an open letter to CBK Governor Kamau Thugge, Dahir raised serious concerns about transparency, national sovereignty, and the potential economic risks tied to the proposed arrangement.
Dahir made at least five demands to the CBK, including the publication of all details of the proposed deal and the holding of a national dialogue before any agreement is finalized. He also called for a Cost-Benefit Analysis that would publicly weigh the potential financial and geopolitical implications of storing Kenya’s gold abroad.
The lawyer further demanded that the government develop a domestic gold reserve facility, arguing that storing such a critical national asset overseas would make Kenya economically vulnerable. “Should Kenya ever find itself in a geopolitical dispute or under sanctions, our gold could be frozen or confiscated, leaving our economy exposed,” Dahir warned.
Governor Thugge had earlier revealed that CBK had initiated preliminary discussions with the BoE and other global institutions as Kenya prepares to buy gold to diversify its foreign reserves, currently valued at around $11 billion (Ksh1.4 trillion). He clarified that the move was not meant to reduce the country’s dollar holdings but to strengthen its overall reserve portfolio.
However, Dahir argues that outsourcing the safekeeping of Kenya’s gold to London undermines national sovereignty, exposing the country to potential external influence or restrictions.
The Bank of England, established in 1694, is one of the world’s oldest central banks and serves as the UK’s reserve manager and monetary policy authority. Still, Dahir insists Kenya must prioritize domestic control of its reserves to safeguard its economic independence.
