ARUSHA: Leaders of the East African Community (EAC) have agreed on a new financing formula that will require member states to contribute equally and according to their economic strength, replacing the bloc’s previous funding arrangement.
The decision was announced in a communiqué issued after the 25th Ordinary Summit of EAC Heads of State held in Arusha on Saturday.
Under the new system, partner states will each contribute 50 percent of the bloc’s budget equally, while the remaining 50 percent will be assessed based on the size of their economies. The change replaces the earlier formula adopted at the 23rd summit, which required 65 percent equal contributions and 35 percent based on economic capacity.
Outgoing chairperson William Ruto said the revised structure would make financial obligations among members more balanced and sustainable.
“We agreed to make contributions to the community fair and equitable by revising the formula so that 50 percent is shared equally and 50 percent assessed according to economic capacity,” Ruto said.
He said the new arrangement would allow the regional bloc to function more effectively while ensuring that countries with larger economies contribute proportionately more to the organization’s budget.
The new financing framework will take effect on July 1, 2026, and partner states have been directed to implement the decision without further consultations by the EAC Council of Ministers.
To address outstanding financial obligations, the summit also approved a one-off measure allowing a 50 percent waiver of arrears owed by partner states, provided the remaining balance is cleared within two years from March 7, 2026.
In another decision, the leaders resolved that members of the East African Legislative Assembly (EALA) will have their salaries paid by their respective national parliaments starting in December 2027, after the current assembly’s term ends.
The summit also received the Secretary General’s report on the operations and management of community organs and institutions and approved a two percent salary increase for staff, effective January 2027.
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On regional security, leaders reviewed progress in the EAC-led Nairobi peace process aimed at restoring stability in eastern parts of the Democratic Republic of the Congo. They called on all parties involved in the conflict to immediately cease hostilities and resume peaceful dialogue.
The Heads of State also urged the African Union to provide financial and logistical support to mediation efforts to help achieve lasting peace in the region.
Six heads of state attended the summit, including host Samia Suluhu Hassan of Tanzania, William Ruto of Kenya, Yoweri Museveni of Uganda, Salva Kiir Mayardit of South Sudan, Hassan Sheikh Mohamud of Somalia and Évariste Ndayishimiye of Burundi.
Leaders from Rwanda and the Democratic Republic of the Congo did not attend the meeting.
Incoming chairperson Yoweri Museveni emphasized the need to deepen economic integration across East Africa to boost production and prosperity.
“If we do not create a bigger market for our producers, we shall not create prosperity for our people,” Museveni said.
He said stronger regional economic integration would allow businesses to expand production, increase trade and create jobs across the region.
Ruto, handing over the chairmanship, said the bloc had made progress in advancing regional integration, pointing to growth in intra-EAC trade and stronger private sector participation in regional development.
“We have seen trade among partner states grow significantly, demonstrating that regional integration is beginning to deliver tangible economic benefits for our people,” he said.
