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Sarah Sanya and Matthew Gaertner

regulatory barriers per se to competition in the banking system of the EAC countries. However, in most of the countries across the region, the former state-owned banks retain a very large market share despite steps to reduce regulatory barriers to entry and exit and attract increased participation from foreign banks. The question remains: why are these new participants unable to take advantage of the opportunity presented by the large unbanked segment of the population in each country to compete more effectively with the former state-owned banks that retain a dominant