EAC operations jeopardized as member states fail to remit contributions

The East African Community (EAC) is grappling with a severe financial crisis, with member states failing to remit over $62 million in contributions for the 2024/25 financial year.
The bloc, which comprises Burundi, the Democratic Republic of Congo, Rwanda, South Sudan, Somalia, Tanzania, Uganda, and Kenya, has seen its programs delayed, while salaries for staff have been postponed due to the mounting budget deficit. Kenya is the only country that has met its financial obligations, while Uganda, Tanzania, and Rwanda have made partial payments. However, states such as Burundi, South Sudan, and the DRC have only paid a fraction of their dues, contributing to a significant shortfall. This crisis has led to the suspension of several EAC programs, including those of the East African Legislative Assembly, and has prompted concerns about the sustainability of the regional integration process. This has led Uganda’s minister for East African community affairs, Rebecca Kadaga, to criticize the consensual decision-making system for causing near financial paralysis in the community.
Calls for sanctions against defaulting states have been made, with some leaders proposing to adopt the African Union’s sanction mechanisms for non-remittance. This financial instability mirrors broader economic struggles in East Africa, where rising debt and loan defaults have been a growing concern. According to a recent study by the African Export-Import Bank (Afreximbank), East Africa tops the list of the continent’s most indebted regions, with Kenya and Tanzania among the highest sovereign loan defaulters. In 2022, Africa’s loans in default climbed to a record $149.4 billion, the highest in three decades, as the rising cost of borrowing contributed to delayed repayments. Hence the EAC now faces the challenge of restoring financial discipline among its members to avoid further setbacks in regional cooperation and development.