Central bank governors change as EAC chases elusive single currency regime

Its implementation will pave the way for a political federation, the fourth and final pillar of the integration.

While the reasons for the appointment of new central bank governors by the member states have varied from political, regime change to expiry of incumbents’ contracts, the changes have led to the reconstitution of the MAC.

The committee has ushered in new members, including Somalia central bank governor Abdirahman Mohamed Abdullahi, following the country’s admission into the bloc.

The appointments of new central bank governors in February by Rwanda and Uganda add to the growing list of new faces at the MAC.

In January 2023, Tanzania President Samia Suluhu Hassan appointed Emmanuel Tutuba, previously a permanent secretary at the Ministry of Finance and Planning, to the position of central bank governor, replacing Florens Luoga, who reached the end of his five-year term.

In June 2023, Kenya’s President William Ruto appointed former Treasury Principal Secretary Kamau Thugge as the new Central Bank of Kenya (CBK) governor, taking over from Dr Patrick Njoroge who had been at the helm for eight years.

In October of the same year, Burundi President Evariste Ndayishimiye appointed Edouard Normand Bigendako as central bank governor, terminating the contract of Dieudonné Murengerantwari, who had been appointed in August 2022 to a five-year term.

In December last year, South Sudan President Salva Kiir sacked central bank governor Alic Garang as part of a broader plan to streamline the operations of the country's security and economic institutions, replacing him with Johnny Ohisa Damian, who previously held the same position.

Last month, Uganda President Yoweri Museveni named Michael Atingi-Ego the new central bank governor. Mr Atingi-Ego has been acting since the death of long-serving governor Emmanuel Tumusiime-Mutebile in 2022.

Read: Uganda’s new central bank boss’ uphill task

Also in February, Rwanda’s President Paul Kagame appointed Soraya Hakuziyaremye as the new central bank governor, replacing John Rwangombwa who has been at the helm for 12 years.

In their last meeting in Juba in May last year, the MAC centred deliberations on inflation trends, and strides made towards the establishment of the East African Monetary Union (Eamu), emphasising commitments to harmonise monetary policies, financial regulations, and crisis management frameworks.

The committee reaffirmed its dedication to fulfilling the remaining objectives in the Eamu roadmap, with a renewed focus on convergence criteria review to meet the revised 2031 deadline.

The EAC member states signed the Protocol on the Establishment of Eamu on November 30, 2013, in Kampala aiming to launch a single currency by 2024.

The target was revised after member states failed to comply with the macroeconomic pre-conditions, with enabling institutions also falling behind schedule.

The Eamu protocol provides for four primary convergence criteria that must be attained and maintained by each member state for at least three years before joining the monetary union.

These include a ceiling on headline inflation of eight percent, a reserve cover of 4.5 months of import, a ceiling on the overall deficit of three percent of GDP, including grants, and a ceiling on gross public debt of 50 percent of GDP in net present value terms.

It also provides for the creation of four key institutions—the East African Monetary Institute, East African Financial Services Commission, East African Statistics Bureau and East African Surveillance, Compliance and Enforcement Commission.