Kenya, East Africa’s biggest economy, is committed to move to have a uniform currency in the region. The East African Community had planned to move to a single currency this year but a backlog of articles to be agreed on by member states has delayed the move. Should it be implemented, this would make EAC the second regional bloc to adopt single currency after the European Union.
Finance Minister Robinson Githae has said Kenya is committed to the moving to a unified currency. Speaking during the opening of the Exporters Forum 2012, Githae said the switch to a unified currency will benefit exporters and ease trading in the region opening up more opportunities for Kenyans in the region.
“We are actively positioning Kenya to reap the benefits from regional integration in EAC and the wider COMESA market. In this regard we are committed to single currency plans for EAC to lower transaction cost for exporters, among other benefits,” Githae said.
The single currency is expected to increase the region’s global competitiveness, and stabilise currency fluctuations. The Kenyan shilling has gone through turbulent times in the recent past hitting lows of Ksh. 107 against the dollar in October 2011, and is currently trading at Ksh. 84. The Ugandan unit has been on a stable trend trading on an average of Ush. 2500 against the dollar since January after the Ugandan Central Bank cut lending rates to 20%. Riding on steady cotton and tobacco exports, the Tanzanian shilling has been stable against the dollar trading at Tsh. 1600 to the dollar.