When these three territories were British colonies (strictly Tanganyika was a League of Nations Mandated Territory and then a UN Trust Territory) each had a British governor but for several purposes they were treated as a unit. The British intended them to become a Federation. The highest colonial level was the High Commission, a governors' conference for common action and to supervise the common services.

At independence in 1962 there was created an East African Common Services Organisation which was responsible for Customs and Income Tax, the Post Office, the Railways, East African Airlines, the University, and other services including Tsetse fly control and research. Most important was the Monetary Agency which issued the common currency, the East African Shilling.

After independence the three governments failed to agree on setting up a Federation and gradually went their own way, splitting all the common services. The Common Currency was probably the most serious loss as two of the successor currencies rapidly inflated, and eventually the Kenyan currency too. The Currency broke up when Tanzania adopted socialism in 1966 and nationalized all its banks. Customs posts were set up on roads which previously had experienced free trade, making the ordinary traders into smugglers. As late as 1971 the author used a currency note of Uganda in Tanzania, but after that period the currencies were entirely separate.

In 1968 a treaty was signed to create a Community on the model of the European Community, which it was hoped would attract more members, such as Zambia and Ethiopia. However, in Uganda the government was overthrown by Idi Amin in 1971 and the heads of state ceased to meet, as the president of Tanzania, Julius Nyerere, refused to meet Idi Amin. The joint Corporations were then broken up, creating three weak economies where there had previously been a relatively strong regional economy. The airline and railways suffered by losing their common maintenance and planning. Kenya railways remained strong while the other two deteriorated. For the economist it is an interesting case study of the dangers of fragmenting economies into units which are too small, and especially of the dangers of small unconvertible currencies. The community effectively ended in 1977.

At present Kenya has some hostility to Uganda, though Uganda is cooperating better with Tanzania - but these are the two weakest economies. It is possible that in the future the three may come closer together again after experiencing 20 years of the disadvantages of being separate. The French former colonies show the advantage of a common currency not under the control of any single set of politicians: the CFA Franc is used in many west African countries.

In November 1991 there were signs of renewed cooperation when the three presidents held talks together and in February 1992 they agreed to resume the operation of the Community.

Agreement to restore the Community was signed in 1999.

A new East African Assembly was due to be inaugurated at the end of November 2001. Nine members from each state will be appointed by the member governments: Kenya, Uganda and Tanzania. Rwanda is due to join 'soon'. Burundi has applied for membership. A customs Union of Kenya, Uganda and Tanzania was inaugurated 1 January 2005.

A new customs union is due to be set up in 2010, including the original three plus Rwanda and Burundi. A new common currency is also due.