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Abstract
The realization of a successful monetary union among EAC partner states depends upon a
sufficient degree of convergence of partners economies to established criteria. Gathering but
scattered research has begun assessing the various benchmarks for this characteristic. This
work integrates and synthesizes the various findings of literature with the view of providing a
general perspective on how far the partner states have reached in meeting the macroeconomic
convergence criteria and whether they have met the precondition for ascending the union.
The review is done with anticipation of uncovering the challenges countries are encountering
in aligning the economies to set criteria and what possible policy strategies exist to overcome
these problems. Findings reveal that there has been very limited convergence. Generally
countries remain behind the staged indictors. Progress to the monetary union is challenged
by the highly demanding criteria, lack of exchange rate mechanism, obstacles to the common
market, multiple memberships and many more. While countries might have the option of
revising the benchmarks, efforts to strengthen national economic growth, build regional
capacities, harmonize policies related to the monetary union, and correct constraints in the
common market will enhance deeper integration and contribute greatly to macro-economic
convergence.