East African Community (EAC) central bank governors have reaffirmed their commitment to launching a single regional currency by 2031, following the 29th Ordinary Meeting of the EAC Monetary Affairs Committee (MAC) held in Kampala, Uganda, on July 24, 2026.
The meeting brought together central bank governors from across the regional bloc to review progress toward the East African Monetary Union (EAMU), with discussions focusing on structural adjustments, economic challenges, and implementation measures required to achieve monetary integration.
The governors approved measures aimed at improving economic coordination, strengthening compliance with convergence requirements, and advancing financial systems needed for the introduction of a common currency.
EAC maintains 2031 target for single currency launch
The central bank heads reaffirmed the 2031 deadline for establishing the East African Monetary Union, following previous delays that disrupted the original implementation schedule.
The EAC initially planned to introduce a single currency by 2024 under the roadmap established through the EAMU Protocol. However, the deadline was missed due to delays in meeting economic milestones, slow legislative alignment, institutional challenges, and the impact of the COVID-19 pandemic on regional economies.
The timeline was later adjusted to 2027 before being extended to 2031 as member states continued efforts to address outstanding requirements for monetary integration.
Historical timeline of the EAC currency project
Regional currency cooperation in East Africa dates back to 1905, when the British-led East African Currency Board introduced the East African shilling.
The system ended in 1977 following political disagreements among regional states, but efforts toward monetary integration resumed decades later under the EAC framework. The current single currency timeline includes:
- 2013: EAC Heads of State sign the East African Monetary Union Protocol.
- 2024: Original deadline for introducing the single currency missed.
- 2027: Revised target delayed due to slow legislative and institutional progress.
- 2031: Current deadline reaffirmed by central bank governors.
Requirements for joining the East African Monetary Union
To participate in the single currency arrangement, EAC partner states must meet and maintain key macroeconomic convergence criteria for at least three consecutive years. The requirements include:
- Inflation: Headline inflation must not exceed 8.0%.
- Fiscal deficit: Budget deficits, including grants, must remain within 3.0% of GDP.
- Public debt: Gross public debt must remain below 50.0% of GDP.
- Foreign reserves: Countries must maintain reserves equivalent to at least 4.5 months of import cover.
The EAMU roadmap further requires the creation of four institutions responsible for managing the transition toward a common currency. The institutions include:
- East African Monetary Institute (EAMI): The institution will serve as the foundation for the future East African Central Bank.
- East African Financial Services Commission: The commission will regulate regional financial sectors, including banking, insurance, and microfinance.
- East African Surveillance, Compliance, and Enforcement Commission: The institution will monitor compliance with monetary union requirements and support macroeconomic stability.
- East African Statistics Bureau: The bureau will coordinate regional economic data collection and standardize statistics used for policymaking.
Expected impact of a single regional currency
The introduction of a common EAC currency is expected to reduce foreign exchange costs for businesses operating across the region by eliminating currency conversion requirements and related transaction charges.
The currency union is also expected to improve trade efficiency by supporting faster financial settlements and reducing payment barriers along major regional trade routes.
Border points such as Malaba between Kenya and Uganda could benefit from improved trade processes as businesses and transport operators experience fewer currency-related delays.
A unified currency would also increase the combined economic scale of East Africa and strengthen the region’s financial position in global markets.
Challenges affecting the EAC single currency timeline
- Failure to meet convergence benchmarks
No EAC partner state has successfully met all four major macroeconomic convergence requirements covering inflation, fiscal deficits, public debt levels, and foreign reserve holdings. The continued gap between current economic conditions and required benchmarks remains a major challenge for the monetary union project.
- High levels of dollarization
Some EAC economies continue to rely heavily on the US dollar for transactions. Somalia, which recently joined the regional bloc, has high levels of dollar usage, limiting domestic central banks’ ability to manage liquidity and implement monetary policies effectively.
- Institutional delays
The establishment of some required monetary union institutions has experienced delays, including disagreements over the host country for the East African Monetary Institute. These delays have slowed technical preparations and regulatory coordination needed for the transition.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.