The East African Community (EAC) has shelved a decision on the host country for the East African Monetary Institute (EAMI), casting uncertainty over Kenya’s longstanding bid to host the transitional institution that will evolve into a regional central bank.

 

The EastAfrican understands that the Council of Ministers has agreed to review the allocation of all unhosted EAC institutions collectively rather than deciding on the EAMI alone, which had become a source of tension.“Right now, there is no talk about EAMI. It’s about all the institutions that have not been hosted. All institutions will now be considered collectively,” a source privy to the discussions told The EastAfrican.“The Council of Ministers had directed the EAC Secretariat to convene an extraordinary meeting of ministers in February this year so that all unhosted institutions could be discussed and decided upon, but that meeting has not taken place," the source added.

The idea was to explore how the country could engage with other partners to support its bid to host the EAMI. However, that is no longer relevant because EAMI will not be considered independently—rather, all unhosted institutions will be reviewed in their entirety,” the source added.

Kenya’s EAC Cabinet Secretary Beatrice Askul confirmed the Council meeting had not taken place but insisted the country is still in the race to host the institution.“It’s yet to be done, and Kenya is still pursuing the bid to host,” Ms Askul, who chairs the EAC Council of Ministers, told The EastAfrican.

Kenya has been lobbying to host the EAMI to boost investor confidence and position Nairobi as a regional financial hub. Uganda and Tanzania also expressed interest, but a verification report in 2023 ranked Tanzania the most suitable, followed by Uganda, Burundi, and Kenya.

Kenya, Uganda, and South Sudan rejected the report, citing a lack of transparency. Only Tanzania and Burundi supported it, while Rwanda and the DRC called for compromise.

The Council had asked Kenya to submit a new proposal in early 2024, but in November redirected the process toward a collective review of all unhosted institutions, including the EAC Bureau of Statistics, the EAC Financial Services Commission, and the EAC Compliance, Surveillance and Enforcement Commission.

The EAC has 12 organs and institutions, with Arusha hosting the Secretariat, the East African Court of Justice (EACJ), and the East African Legislative Assembly (Eala).

Uganda hosts the Inter-University Council for East Africa (IUCEA), East African Development Bank (EADB), Civil Aviation Safety and Security Oversight Agency (Cassoa), and Lake Victoria Fisheries Organisation (LVFO).

The indecision over who will host the EAMI—which will oversee the single currency—has delayed the launch of the monetary union, the third pillar of EAC regional integration after the Customs Union and the Common Market.

The launch of a single currency has already been pushed back to 2031 from an initial 2024 target due to partner states’ failure to meet economic convergence criteria on inflation, debt, deficits, and reserves.

The Political Federation is the ultimate goal of EAC regional integration, representing the fourth step after the Customs Union, Common Market, and Monetary Union.

EAC Secretary General Veronica Nduva did not immediately respond to a request for comment.​

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