Central bank governors from East African Community (EAC) member states convened in Kampala on July 24, 2026, to renew their commitment toward establishing a single regional currency by 2031.

The 29th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC), chaired by Bank of Uganda Governor Michael Atingi-Ego, brought together governors and senior officials from Kenya, Tanzania, Somalia, Burundi, South Sudan, and Rwanda, alongside representatives from the EAC Secretariat.

Economic Context and Regional Performance

Despite global economic headwinds, including slower growth projections and rising costs linked to Middle East tensions, the East African region is expected to expand at 5.2% in 2026, surpassing the Sub-Saharan Africa average of 4.3%. Inflation has also improved, easing to 6.7% in the 2025/26 fiscal year from 9.6% the previous year.

Progress and Challenges Toward Monetary Union

The governors acknowledged progress in harmonising monetary policies, upgrading data systems, and advancing the East African Payment System. However, they noted uneven advances across partner states, with none yet meeting all four critical macroeconomic convergence criteria necessary for the monetary union:

  • Inflation targets
  • Fiscal deficit limits
  • Public debt thresholds
  • Foreign exchange reserve requirements

To address these gaps, the committee urged partner states to diversify foreign reserves, including through domestic gold purchases, increase remittance inflows, and enhance coordinated regional policy responses. A peer review mechanism was also endorsed to strengthen macroeconomic oversight.

Focus on Payment Systems and Cybersecurity

The meeting reviewed the implementation of the EAC Cross-Border Payment System Masterplan aimed at reducing transaction costs and improving settlement speeds across member states. Financial and technical resources are being mobilised to support these initiatives.

Governors emphasized the growing cybersecurity risks to financial stability and agreed to deepen regional cooperation to mitigate these threats. The financial sector remains well capitalised and liquid despite these challenges.

Looking Ahead

The EAC’s monetary union ambition builds on earlier integration steps, including the Customs Union (2005) and Common Market (2010). The recent inclusion of the Democratic Republic of Congo and Somalia has increased economic diversity, adding complexity to the single currency goal.