AFRICA: The East African Community (EAC) is facing a deepening financial crisis as member-state arrears accumulate and the regional bloc struggles to meet basic obligations, including staff salaries.
With the Community unable to fully pay February salaries and finance routine operations, calls are growing for urgent reforms to restore fiscal discipline and safeguard the bloc’s viability.
Internal communications circulating within EAC institutions reveal that liquidity challenges have reached critical levels. A memo dated 24 February 2026 from the Clerk of the East African Legislative Assembly (EALA) warned members that available funds were insufficient to cover salary obligations and outstanding commitments.
The development marks a significant escalation of long-standing financing difficulties and suggests the Community is operating under severe financial strain.
Financial records show that partner states have accumulated arrears totalling about US$54.8 million in contributions to the main EAC budget.
Of assessed contributions of roughly US$56 million for the 2025/26 financial year, only about US$21.4 million had been remitted by late January—equivalent to approximately 38 per cent compliance.
Total outstanding obligations across multiple years now stand at an estimated US$89.3 million, underscoring chronic delays in member-state payments.
The pattern of non-compliance varies across partner states. Reported arrears include approximately US$22.7 million owed by Burundi, about US$27.7 million by the Democratic Republic of Congo, around US$21.8 million by South Sudan, and roughly US$10.5 million by Somalia. Rwanda had remitted only about a quarter of its required contributions, leaving an outstanding balance exceeding US$5 million. Uganda has settled most of its obligations but still owes more than US$1 million.
Only Kenya and Tanzania have paid their contributions in full, with Tanzania recording a small credit balance.
KEY POINTS:
- The East African Community is facing a financial crisis due to member states failing to pay contributions.
- About US$54.8m in arrears exists, with total outstanding obligations exceeding US$89m.
- Only 38% of required contributions for 2025/26 had been paid by January.
- Some members owe large sums (Burundi, DRC, South Sudan, Somalia); only Kenya and Tanzania have paid in full.
- Funding shortfalls are affecting salaries and operations, prompting debate on spending discipline and executive pay.
- The crisis raises concerns about the sustainability of regional integration without stronger financial compliance and reforms.
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Additional arrears extend to other EAC institutions. Contributions to the Inter-University Council for East Africa remain partially unpaid, with outstanding balances exceeding US$18 million. Similar shortfalls affect the Lake Victoria Fisheries Organisation, where compliance stands at around two-thirds of required payments.
The widespread financial stress across multiple EAC bodies points to systemic issues rather than isolated shortfalls.
The growing crisis has intensified debate about the cost of maintaining a highly paid regional bureaucracy at the EAC Secretariat in Arusha. Critics argue that the current administrative structure is financially unsustainable, particularly when key obligations cannot be met.
Reports indicate that senior officials receive substantial remuneration. The Secretary General’s monthly salary is said to exceed US$20,000, with Deputy Secretaries General earning between US$18,000 and US$22,000. These packages are supported by benefits including housing allowances, education support, travel privileges and health insurance.
Members of the EALA are also among the region’s highest-paid public officials. Legislators receive a basic monthly salary of about US$6,400, while total earnings with allowances are reported at around US$14,000, despite not maintaining local constituencies or development responsibilities.
By contrast, national public service pay scales in partner states remain significantly lower. For example, senior civil servants in Tanzania and elsewhere earn far less—even with allowances—than many EAC executives, highlighting a stark disparity that has fuelled public discussion.
Prof John Kariuki of the University of the Witwatersrand has noted that such disparities raise questions about equity within the regional bloc. He points out that governments financing the Community must manage tight national budgets while supporting a regional bureaucracy whose compensation remains disconnected from local economic realities.
Dr Hussein Kabagambi of George Washington University has similarly argued that maintaining high executive pay undermines the credibility of regional integration when the Community relies primarily on member-state contributions rather than stable external funding.
Supporters of the current pay structure defend it as necessary to attract qualified professionals from across the region, following an international civil service model. However, critics counter that the EAC differs from global multilateral institutions because it depends mainly on member contributions rather than predictable donor funding.
Proposals that have emerged in public and expert discourse include introducing salary ceilings tied to the highest civil service pay in partner states to reduce administrative costs, and strengthening accountability measures to ensure member-state compliance.
Some stakeholders argue that representatives from states that fail to remit contributions should face restrictions on receiving salaries or allowances funded by the Community.
Others propose revising the contribution formula to reflect the economic strength of each member state. Under such a model, larger economies would contribute proportionately more, potentially opening debate about governance reforms that could give greater voice to major contributors like Kenya, Tanzania and Uganda.
At an operational level, aligning employee salaries with actual revenue inflows has been suggested as a way to stabilise finances during periods of uncertainty. Temporary salary adjustments tied to available resources would demonstrate fiscal responsibility while preserving institutional functions.
The current crisis has exposed structural weaknesses that long predates recent shortfalls. Without reform, the Community risks losing public confidence as citizens question why generous benefits continue amid unpaid obligations and cutbacks.
Regional integration remains a core objective for East Africa, promising expanded trade, improved infrastructure and deeper political cooperation. However, the success of that project ultimately depends on sustainable institutions supported by financially responsible member states.
The EAC now faces a critical choice between decisive reform and gradual institutional decline. Unless urgent measures are taken to enforce contributions, rationalise salaries and strengthen accountability, one of Africa’s most ambitious regional projects could be defined not by unity but by insolvency.