Heads of State of the East African Community (EAC) have agreed to revise the formula used by member states to contribute to the regional bloc’s budget, introducing a system where countries with stronger economies will pay more. The decision was reached on March 7 during the 25th Ordinary Summit of EAC Heads of State held in Arusha, Tanzania. ALSO READ: PM Nsengiyumva arrives in Arusha ahead EAC Summit Speaking after the summit, William Ruto, President of Kenya and outgoing Chairperson of the EAC, said the leaders made several “consequential decisions” aimed at making the regional bloc more sustainable and fairer for all member states. “We took the decision that going forward, contributions to this community should be fair and equitable. The countries that have bigger economies and benefit more from the community should pay more,” he said. Previously, EAC member states contributed equally to the bloc’s budget. However, Ruto said leaders agreed to adjust the system after reviewing recommendations from the Council of Ministers. “We have agreed to change the contribution formula from one where every country contributes equally. Our Council of Ministers had recommended that 65 percent be shared equally and 35 percent through assessed contributions,” he said. ALSO READ: EAC unveils customs bond system in Arusha “However, we have improved on that proposal. We have decided that 50 percent will be contributed equally, while the remaining share will be based on assessed contributions, meaning countries with bigger economies and greater benefits from the community will pay more.” The change comes as the regional bloc faces significant outstanding contributions from some member states. As of January 31, the EAC was owed $89.37 million by member states. DR Congo owed $27 million, followed by Burundi with $22.7 million, South Sudan with $21.8 million, and Somalia with $10.5 million. Meanwhile, Rwanda, Tanzania, Kenya and Uganda have fully paid their contributions for the 2025/26 financial year. Ruto also said leaders agreed on additional measures aimed at improving the governance and management of the regional bloc as it continues to expand. “The statute that established the community was formulated when we had only five members. But today we are many more, and the structure must reflect that reality,” he said. “We have therefore taken the decision that certain matters will be determined either by consensus or through a defined voting threshold.”
