East African Legislative Assembly (EALA) MP David Sankok is pushing for the adoption of local currencies for cross-border trade among East African Community (EAC) member states as a step towards boosting regional trade.

Speaking during an interview on a KMB podcast on Sunday, February 1, 2025, Sankok said the time has come for EAC countries to allow the use of their local currencies across borders.

He argued that this would eliminate the need for traders and travellers to convert money every time they cross into another member state.

Sankok explained that the proposal would allow someone purchasing goods in a neighbouring country to transact using their home currency without first changing it to the host country’s currency.

According to the EALA MP, the bill is currently before the Arusha-based EALA Parliament and is intended to act as a precursor to the adoption of a single regional currency among EAC member states in the future.

He said the proposed law would lay the foundation for deeper economic integration and enhanced trade within the bloc.

“I had a bill which aimed at the usage of local currency among the EAC member states as the precursor to the adoption of a common currency,” he stated.

Foreign currency

Sankok expressed disappointment with what he described as the growing preference for the US dollar in Kenya, particularly in the hospitality sector.

He noted that many hotels in Nairobi and the Maasai Mara quote prices in dollars instead of local currencies, a trend he said undermines regional and local trade.

“It’s unfortunate. Go to a hotel in Maasai Mara or Nairobi, and they will tell you their price in US dollars. Can you go to America and get their price in Kenyan shillings? My bill was that for intercountry trade we use the local currency,” Sankok stated.

He further explained that under his proposed bill, traders would not be required to convert currencies when doing business across borders.

Instead, businesses would be expected to accept either the local currency of the visiting trader or that of the host country, provided both are from EAC member states.

Sankok said his vision is to create a situation where citizens can travel freely from one EAC country to another, carrying only their local currency, and conduct business without financial barriers.

While acknowledging that the legislative process may take time, Sankok expressed confidence that the bill will eventually be implemented.

EALA bills

He pointed out that EALA bills often face lengthy bureaucratic procedures, as they must first be passed by the Arusha-based assembly, approved by EAC heads of state, and then ratified by the national parliaments of all eight member countries.

He noted that while some bills may stall at the national level, he remains optimistic that his proposal will gain the necessary support and ultimately be adopted across the region.