• EAC adopts new formula balancing equal and capacity-based contributions
• Reform takes effect July 1, 2026, to ease funding tensions
• Summit grants 50% waiver on member states’ outstanding arrears
  

At the 25th Summit of the East African Community (EAC) Heads of State, leaders adopted a new financing formula aimed at rebalancing member states' contributions. Under the revised mechanism, contributions will be split equally between a flat-rate component, shared uniformly across all member countries, and a capacity-based component tied to each country's economic size. The reform will take effect on 1 July 2026.

The decision follows years of chronic financial tensions within the regional bloc. For the 2025–2026 fiscal year, the organisation said it needed more than $89 million to fund its institutions and push forward regional integration, an agenda seen as key to building value chains able to withstand global economic shocks.

Of the bloc's eight member states, only Kenya and Tanzania have paid their annual contributions in full, each amounting to $7 million. The payment delays reflect both economic constraints and diverging national priorities, including security challenges in the Democratic Republic of Congo (DRC) and urgent infrastructure investment needs in several other countries.

Outstanding arrears remain substantial. The DRC owes the organisation approximately $27 million, while Uganda has the lowest arrears, estimated at $1.1 million. The funding gap has already affected EAC institutions: staff salaries have been delayed, meetings postponed and projects stalled. The East African Legislative Assembly (EALA) was also forced to suspend its activities in the first half of 2025.

"We must be aware that regional integration is no longer a choice, but a necessity for forging regional value chains that are resilient to global shocks. The East African Community offers unparalleled opportunities, and its success depends on the quality of our integration within our own region," said Beatrice Askul Moe, President of the EAC Council of Ministers.

Alongside the funding reform, the Summit also approved a one-time 50% waiver on member states' outstanding arrears to reflect the economic difficulties faced by some partners. Countries benefiting from the waiver will, however, be required to settle the remaining 50% within two years.

Charlène N’dimon