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DevNews Desk| East Africa. Urge- DevWire
EAC advances fiscal and monetary policy coordination ahead of monetary union
The East African Community (EAC) is reviewing measures to improve fiscal discipline, harmonise tax policies and strengthen monetary policy coordination as Partner States prepare for the East African Monetary Union.
The discussions concluded a series of meetings held in Arusha between 21 and 25 September 2026, bringing together the EAC Committee on Fiscal Affairs and the Economic Affairs and Coordination Subcommittee of the Monetary Affairs Committee.
A joint session from 23 to 25 September examined measures requiring coordinated action by national fiscal authorities and central banks.
Key issues included differences in excise duty rates, value-added tax harmonisation and administrative tax procedures. Participants also considered progress on a regional agreement to avoid double taxation, which could simplify cross-border taxation and provide greater certainty for businesses operating across Partner States.
The committees reviewed proposals for improved public financial management, including stronger cash-flow forecasting and arrangements to progressively phase out central bank overdraft facilities used by governments.
A draft framework for coordinating monetary and fiscal policy is also under review. It would establish institutional responsibilities, information-sharing arrangements and mechanisms for jointly assessing economic developments.
The EAC reported that no Partner State had met all four primary macroeconomic convergence criteria at the July 2026 Monetary Affairs Committee meeting.
The ongoing work is intended to improve accountability, strengthen macroeconomic stability and support the institutional preparations required for deeper regional economic integration.
Source: East African Community, 25 September 2026
DevNews Desk| East Africa. Urge- DevWire
Arusha, Tanzania- 25 September 2026
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