Nairobi, Kenya Three East African Community (EAC) member states have proposed a new approach to resolving the deadlock surrounding the selection of the East African Monetary Institute (EAMI) host. This comes after rejecting the current technical procedures, which are deemed time-consuming and yield unsatisfactory results.
Kenya, Uganda, and South Sudan have voiced their disapproval of the previous process that ranked Tanzania as the most suitable candidate for accommodating the EAMI. Instead, they advocate for a political solution that prioritizes consensus and expedites the establishment of the critical institution.
The proposed shift aligns with Kenya’s earlier suggestion of abandoning the technical verification process in favor of a political solution. According to Abdi Duba, Kenya’s Principal Secretary for EAC Affairs, the current system “does not yield what it is supposed to yield” and consumes excessive time and resources.
The EAMI, a crucial precursor to the proposed East African Central Bank, plays a pivotal role in the advancement of the EAC’s Monetary Union. However, the selection of its host has become a major stumbling block, impeding the timely implementation of the Union and hindering regional economic integration.
The previous verification exercise, conducted in March 2023, placed Tanzania at the top with a score of 86.3%, followed by Uganda (82.42%), Burundi (78.1%), and Kenya (77.35%). However, the outcome faced strong objections from several members, prompting the search for an alternative solution.
To move forward, Kenya has submitted a comprehensive proposal outlining a new selection system. This proposal, expected to be presented by January 31, 2024, aims to offer a faster and consensus-driven approach to resolving the EAMI host dispute.
The EAC Secretariat will then convene a meeting by March 30, 2024, to discuss and consider the proposed system. This marks a crucial step toward breaking the deadlock and paving the way for the establishment of the EAMI and the subsequent launch of the East African Monetary Union.
The successful implementation of the Monetary Union holds immense significance for the economic prosperity and development of the entire East African region. The timely resolution of the EAMI host dispute is therefore critical to achieving this shared goal and ensuring the region’s continued economic growth and stability.