Experts have called for stronger enforcement mechanisms to ensure East African Community (EAC) member states meet their financial obligations under the bloc’s new funding model. Under the revised arrangement, Kenya will remain the largest contributor to the EAC budget, increasing its annual contribution from $7 million to $11.6 million. ALSO READ: What’s next for EAC defaulters? Tanzania will contribute $8.2 million annually, followed by Uganda ($7.3 million) and Rwanda ($7.2 million). The Democratic Republic of Congo will contribute $5.9 million, Somalia $5.8 million, South Sudan $5.2 million, and Burundi $4.5 million. Together, the eight member states will contribute $55.7 million annually. The new funding model, which takes effect on July 1, splits member contributions into two equal components. Half of the budget will be shared equally among all member states, while the remaining 50 per cent will be determined by each country’s economic capacity, measured using the average nominal GDP per capita over the previous five years. “The model is based on countries’ ability and willingness to pay, as well as their macroeconomic stability,” said John Bosco Kalisa, a regional economist. “You look at factors such as economic stability and growth rates. Rwanda and Uganda, for instance, have been growing at nearly the same pace—around 7.5 per cent—which helps explain why their contributions are almost identical.” ALSO READ: How Rwanda's $7.2m contribution to EAC was calculated Kalisa said the formula addresses economic disparities within the bloc by allowing weaker economies to contribute less. “Countries such as Burundi and South Sudan face challenges related to currency depreciation and convertibility. All these factors are taken into account,” he said. He noted that the success of the model will depend on member states honouring their commitments, paying contributions on time, and clearing outstanding arrears. “This will enable the Secretariat to implement programmes and strategies that have been delayed by funding constraints,” he said. ALSO READ: With reforms, EAC set to save $2.5m While he described the new formula as a practical step toward addressing accumulated arrears, Kalisa argued that compliance measures are equally important. “Countries that fail to meet their obligations should face consequences, such as being barred from holding positions within the Secretariat or participating in key decision-making processes,” he said. “Strict compliance measures are necessary.” Kalisa also stressed the need for stronger political commitment to regional integration. “Regional integration is a foundation for economic transformation. Member states should look beyond narrow national interests and focus on the broader regional market for trade and investment. The EAC remains critical to unlocking these opportunities,” he said. ALSO READ: Bigger economies set to pay more into EAC budget On persistent arrears, Kalisa warned that member states may continue to delay payments if there are no meaningful penalties. He also urged the EAC to diversify its revenue sources instead of relying solely on member contributions. “The Secretariat needs to be innovative. A 0.2 per cent levy on imports destined for the region could provide a more stable source of funding,” he said. “Otherwise, even the current model may struggle, given the high levels of external debt many member states are carrying.” Finance and economics expert Jean Claude Rwubahuka welcomed the use of GDP per capita in determining contributions, noting that the formula relies on long-term averages rather than single-year economic performance. He added that available World Bank data shows Rwanda recorded stronger average economic growth than Uganda during the 2020–2024 period.
