Central Banks from the East African Community (EAC) have reaffirmed their commitment to introducing a single regional currency by 2031, with central bank governors agreeing to accelerate implementation of the East African Monetary Union (EAMU) roadmap despite uneven progress by member states.
During the 29th Ordinary Meeting of the Monetary Affairs Committee held on July 24, the committee noted that EAC partner states’ central banks have made significant progress in implementing the revised roadmap towards the East African Monetary Union.
Some of the achievements enumerated include modernizing and harmonizing monetary policy frameworks, strengthening data compilation, analytical and risk management systems, enhancing policy coordination through information sharing and joint research, promoting the use of the East African Payment System, and building human capacity across central banking institutions.
“The meeting reviewed progress made in the implementation of the revised roadmap towards realization of the East Africa Monetary Union (EAMU) and establishment of a single EAC currency by 2031. The Committee noted that the EAC Partner States’ central banks have made progress in implementing the EAMU Roadmap,” read part of the statement.
EAC Reaffirms Plan to Launch Single Currency by 2031
However, the governors observed that progress towards meeting the convergence criteria required for the monetary union remains uneven, with no EAC partner state having met all four primary macroeconomic benchmarks.
The committee attributed the slow progress to the challenge of maintaining macroeconomic stability while financing critical infrastructure projects amid a volatile global economic environment and the spillover effects of ongoing geopolitical conflicts.
“Nonetheless, the meeting noted that although Partner States have undertaken significant macroeconomic reforms and implemented policies to meet the convergence criteria, the progress has remained uneven, with no Partner State having attained all four primary convergence criteria,” read part of the statement.
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To address these challenges, the governors agreed that partner states’ central banks should strengthen economic resilience by diversifying sources of international reserves through domestic gold purchases and increased remittance inflows.
They also called for stronger regional policy coordination.
The meeting further resolved to fast-track the implementation of the East African Monetary Union roadmap by establishing a peer review mechanism to strengthen macroeconomic surveillance across the region and developing operational frameworks to support the implementation of the EAC Five-Year Development Strategy for 2026/27 to 2030/31.
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Cross-Border Payment System Plan
The committee also reviewed progress in implementing the EAC Cross-Border Payment System Masterplan, which was approved during its 28th meeting.
According to the Governors, the masterplan seeks to modernize and integrate payment systems across the region by addressing high transaction costs, long settlement periods, limited interoperability, and fragmented payment infrastructure.
The committee stated that the implementation of the masterplan has already begun, with member states developing annual work plans, prioritizing implementation initiatives, and mobilizing financial and technical resources to support its rollout.
Despite heightened global economic uncertainty, the committee said the EAC region is expected to remain resilient, with economic growth projected at 5.2 percent in 2026, outperforming the Sub-Saharan Africa average of 4.3 percent.
Average inflation across the region eased to 6.7 percent in the 2025/26 fiscal year from 9.6 percent in the previous financial year. Inflation is expected to remain moderate if tensions in the Middle East ease gradually.
The governors also noted that regional currencies are expected to remain broadly stable, supported by diversified foreign exchange inflows and ongoing domestic foreign exchange market reforms.
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