The East African Community (EAC) is developing an integrated payment and settlement system aimed at reducing member states’ dependence on the US dollar in cross-border transactions and boosting regional trade.
The First Deputy Prime Minister and Minister for East African Community Affairs, Rebecca Kadaga, revealed this during a parliamentary sitting on Tuesday, November 3, 2026, while presenting a statement on the implementation of the East African Payment System (EAPS).
Kadaga said the proposed integrated system would lower the cost of doing business, deepen intra-EAC trade and provide a foundation for the proposed East African Monetary Union and eventual adoption of a single regional currency.
The system seeks to establish a regional payment network through which individuals and businesses can transfer money securely, instantly and affordably between member states using bank accounts, mobile money wallets and other authorised digital payment channels.
Currently, the EAPS connects the national Real-Time Gross Settlement systems of Uganda, Kenya, Tanzania and Rwanda, allowing commercial banks to conduct cross-border transactions and settle payments in regional currencies.
However, Kadaga noted that Burundi, South Sudan, the Democratic Republic of Congo and Somalia are not yet fully integrated into the platform, limiting its coverage across the bloc.
To address the gaps, the EAC adopted the Cross-Border Payment System Masterplan in 2025. The plan provides for the expansion and modernisation of the EAPS, harmonisation of payment-service-provider licensing and regulation, and increased use of partner states’ currencies in regional transactions.
Kadaga called on the Ministry of Finance, Planning and Economic Development, Bank of Uganda, commercial banks, mobile network operators and fintech companies to work with her ministry to ensure effective implementation of the masterplan.
She also urged Parliament to support the harmonisation of Uganda’s payment-system laws with EAC frameworks, provide resources for digital and financial infrastructure, and monitor the country’s implementation of regional commitments.
The Shadow Minister for EAC Affairs, Hakim Kizza, welcomed the initiative but called on government to champion the establishment of a central bank-backed liquidity facility to ensure commercial banks have sufficient supplies of regional currencies.
Kizza argued that despite efforts to promote local currency settlements, traders still rely on the US dollar for cross-border transactions because of shortages of regional currencies at commercial bank level.
