Sharp Daily
No Result
View All Result
Monday, July 7, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

East African Community faces delays in monetary union ambitions

Kevin Cheruiyot by Kevin Cheruiyot
November 23, 2023
in News
Reading Time: 2 mins read

The East African Community (EAC) has encountered setbacks in realizing its monetary union, a pivotal aspect of its economic integration objectives. Originally scheduled for achievement by November 2023, the monetary union, constituting the third pillar of EAC economic integration, has experienced delays, prompting a ten-year extension of the deadline.

The EAC Secretariat, tasked with coordinating community endeavors, is presently reassessing the macroeconomic convergence targets established in 2013. These targets, prerequisites for the implementation of a single currency in the region, are undergoing scrutiny due to acknowledged difficulties faced by some member countries in meeting the specified criteria.

Dr. Pantaleo Kessy, the principal economist overseeing monetary affairs at the EAC Secretariat, emphasized the necessity for a reassessment during a press briefing at EAC headquarters in Arusha, Tanzania, on Wednesday, November 23, 2023. He acknowledged that, despite a decade of efforts, some countries within the community are significantly behind in meeting the established convergence criteria.

Macroeconomic convergence, a crucial requirement for the monetary union, mandates that member countries maintain headline inflation below 8.0%, hold central bank reserves equivalent to at least 4.5 months of imports, and limit fiscal deficit and public debt to 3.0% and 50.0% of GDP, respectively. However, none of the EAC member countries has fully met these targets, with persistent challenges in fiscal deficits and public debts.

RELATEDPOSTS

EAC states aim to join Kenya-UK trade agreement

September 14, 2024

EAC’s new tariff regime sparks concerns over Kenyan import costs

July 10, 2024

Dr. Kessy highlighted the evolving global economic landscape and the emergence of unforeseen risks and uncertainties since the establishment of the targets in 2013. He particularly noted the difficulty in achieving the fiscal deficit goal, often attributed to efforts to address infrastructure gaps.

As the EAC Secretariat extends the timeline to 2031 for achieving the convergence criteria, it recognizes the need for a comprehensive study, considering the changes in the economic environment since the initial negotiations in 2013. Dr. Kessy hinted at the possibility of further extensions if the criteria remain unattainable by 2031.

While macroeconomic convergence is a critical element, the EAC faces challenges in realizing other prerequisites for the monetary union. Pending tasks include the completion of customs union and common market protocols, the establishment of key institutions such as the East Africa Monetary Institute and the East Africa Statistics Bureau, and the harmonization of monetary and fiscal policies across partner states.

In conclusion, the EAC’s pursuit of a monetary union confronts significant hurdles, prompting a reevaluation of targets and timelines. The evolving global economic landscape and internal challenges within member states have contributed to the delays, necessitating a realistic assessment of the community’s path toward achieving its monetary integration goals.

Previous Post

CMA welcomes First Future Holdings Limited into regulatory sandbox

Next Post

Cigna Healthcare and AAR Insurance Kenya announce strategic partnership

Kevin Cheruiyot

Kevin Cheruiyot

Related Posts

Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025

LATEST STORIES

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025

Lessons from the Kuramo-TransCentury fallout

July 3, 2025

Private vs Public Pension Funds in Kenya

June 30, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024