EAC Operations Paralysed as Member States Withhold $89 Million in Contributions
The East African Community faces institutional collapse after member states failed to remit annual contributions, leaving regional lawmakers unpaid and key institutions including the legislative assembly and court of justice unable to function.
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The East African Community is confronting an acute financial crisis that has paralysed its core institutions, with member states withholding $89 million in annual contributions and leaving regional lawmakers and staff without salaries for multiple months.
Kenyan President William Ruto has convened an emergency summit to address the funding shortfall, which has rendered the East African Legislative Assembly (EALA), the East African Court of Justice (EACJ), and the Inter-University Council for East Africa operationally defunct, according to The East African. The crisis represents the most severe threat to regional integration efforts since the EAC's reconstitution in 2000.
Institutional Breakdown
EALA members of parliament and administrative staff have gone unpaid as the funding crisis deepens, according to reporting by The East African on February 15. The legislative arm of the eight-member bloc, which comprises Burundi, Democratic Republic of Congo, Kenya, Rwanda, South Sudan, Somalia, Tanzania, and Uganda, requires consistent funding flows to maintain quorum and legislative functions.
The delayed contributions have cascaded through the EAC's institutional framework, affecting not only parliamentary operations but also the regional court system and academic cooperation mechanisms. The Inter-University Council, which coordinates higher education standards and research collaboration across member states, has similarly been unable to execute its mandate.
The $89 million shortfall represents a significant portion of the EAC's operational budget, which relies entirely on member state contributions calculated according to agreed formulas based on GDP and other economic indicators. The payment delays suggest deeper fiscal pressures facing several member governments, particularly as regional economies navigate post-pandemic recovery alongside currency volatility and elevated debt servicing costs.
Regional Integration at Risk
The financial impasse threatens to undermine decades of progress toward economic integration within the bloc, which operates a customs union and common market framework. The EAC's institutional architecture depends on functional legislative and judicial bodies to harmonise trade policies, adjudicate disputes, and advance integration protocols.
President Ruto's emergency summit call reflects the urgency with which regional leaders view the crisis. The summit agenda is expected to address both immediate liquidity requirements and longer-term reforms to ensure more reliable funding mechanisms, potentially including alternative revenue sources beyond member state contributions.
Several member states are experiencing acute fiscal constraints that may explain the contribution delays. South Sudan continues to face economic instability linked to sub-national conflict and oil revenue volatility. The Democratic Republic of Congo, despite its recent admission to the bloc, confronts security expenditures in its eastern provinces. Tanzania and Kenya, the bloc's largest economies, are managing elevated public debt levels that have constrained discretionary spending.
Precedent and Path Forward
The current crisis echoes earlier funding disputes that temporarily stalled EAC operations in 2013 and 2017, though the scale of the present shortfall appears more severe. Those previous episodes were resolved through high-level political intervention and payment schedules, but analysts question whether similar ad-hoc solutions remain viable given the expanded membership and more complex institutional demands.
The EAC Secretariat has limited enforcement mechanisms to compel member state payments beyond diplomatic pressure and potential suspension of voting rights. Regional civil society organisations have called for transparency regarding which specific member states are behind on contributions and by what amounts, arguing that public accountability could accelerate resolution.
The emergency summit outcome will likely determine whether the EAC can maintain operational continuity or faces a prolonged period of institutional dormancy. Financial analysts note that sustained funding failures could prompt credit rating agencies to reassess the bloc's institutional strength, potentially affecting its ability to secure development financing for regional infrastructure projects.
Beyond immediate liquidity concerns, the crisis has renewed debate about structural reforms to EAC financing, including proposals for independent revenue sources such as regional levies on cross-border trade or contributions from regional development banks. Such mechanisms would reduce dependence on member state budget allocations that remain vulnerable to domestic political and economic pressures.