Financial crisis looms in East African Community as member states owe $58 million

As of March 2025, the East African Community Secretariat revealed that member states collectively owe a staggering $58 million in contributions, setting off a string of challenges for the bloc.

This followed a meeting of the EAC Council of Ministers in Arusha, Tanzania this week to address the financial crisis caused by a shortage of funds for programs and staff salaries, which is threatening operations at the Secretariat.

The meeting highlighted the cash shortfall as a top agenda item, alongside security concerns.

This significant shortfall in funding has put essential programs and staff salaries at risk, threatening to halt operations across the bloc.

Zawya reports that the growing debt and the lack of consistent budget remittances from partner states have put the future stability of the EAC in jeopardy.

The East African Community (EAC) is a regional intergovernmental organization comprising six member states: Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan.

Founded in 1967, the EAC aims to promote economic integration, peace, and stability within East Africa. It seeks to foster cooperation in various sectors, including trade, infrastructure development, and security.

The EAC operates through various institutions and organs, including the Council of Ministers, the East African Court of Justice, and the EAC Secretariat, which is based in Arusha, Tanzania.

The organization has made significant strides toward creating a common market and political federation but faces challenges related to financial constraints and member states’ commitment.

As of March 2025, EAC member states owed $58,048,678 to the bloc, with only Kenya and Tanzania fully paying their contributions.

Uganda has paid 99% of its due amount. The ongoing defaults have forced the EAC Secretariat, led by Veronica Nduva, to scale back operations.

The East African Legislative Assembly (EALA) has skipped sittings, and the East African Court of Justice (EACJ) faces a backlog of over 260 cases, worsened by a lack of permanent judges.

The Secretariat is also dealing with a staffing crisis, with 150 vacancies and 30 senior staff set to leave by the end of the financial year.

A special retreat is planned for May to address these issues.