The Prospect of Monetary and Financial Co-operation: a Legal Evaluation of Kenya’s Regional Economic Integration Endeavour in the East African Community
Abstract
The thesis interrogates the legal elements and impediments to regional economic
integration in the Kenyan-EAC setting. An examination of regional economic
integration has to take into account legal factors. The problem that is addressed is that
there is no direct legal framework covering mobile money transactions in Kenya.
Regulation is left to distinct telecommunications and financial legislations. It is for
this reason that harmonization is necessary which will enhance monetary and
financial cooperation in the EAC. The study relied on desktop research by analyzing
the treaty establishing the EAC, text books, journal articles and reports from the
internet focusing on economic integration, harmonization of commercial legislation
and dispute resolution.
The research found out that the Treaty establishing the EAC is the grund norm. A
scrutiny of the phases of integration shows that there are deeper relationship dynamics
between the EAC participant states and the citizens of the member states. The EAC
treaty is also discussed in regard to it’s place vis a vis the Kenyan constitution in as
pertains to hierarchy of laws. The Covid-19 pandemic has also affected Regional
Economic integration and the study posits that a collaborative approach is crucial in
the integration endeavor. In evaluating the legal challenges for Kenya, the study
delves into an analysis of labour as a factor of production, the informal sector and
dispute resolution.
The study also looks at arbitration and addresses the inconsistency from the Kenyan
courts in regard to interference in arbitration matters. This affects monetary and
financial cooperation in the Kenyan-EAC context since a good dispute resolution
mechanism attracts investments from the international community. The study also
looks to the European Union for lessons. Kenya was colonized by the British and one
implication of this is that this colonial experience had an impact on Kenya’s legal
structure. Further, the European Union has had a long time to grow whereas the EAC
is at the stage of infancy compared to the European Union. The study also looks at the
Kenya- United Kingdom Economic Partnership Agreement (EPA) of 2020 and
establishes that there are a variety of interests that need to be balanced.
The prospects for Kenya’s endeavor in regard to monetary and financial cooperation
in the EAC is thus fraught with legal challenges which ought to be addressed. The
study is thus useful in the Kenyan-EAC context especially since 2024 is the set year
when the monetary union should come into fruition. The study is thus nascent as it
will offer legal insights in regard to regional economic integration in the EAC.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Law [291]
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