Arusha. The 25th Ordinary Summit of the East African Community (EAC), held on March 7, 2026, approved a revised financing model for Partner States, marking a significant step toward resolving the regional bloc’s persistent budgetary constraints.
Under the new arrangement, contributions to the Community will be calculated through a formula comprising 50 percent equal contributions from all Partner States and 50 percent assessed contributions based on agreed economic indicators.
The revised structure replaces the previous framework in which 65 percent of funding was shared equally while 35 percent was assessed, a system widely viewed as having constrained the timely implementation of regional programmes and projects.
Leaders expressed determination to equip the EAC Secretariat with predictable and autonomous financial resources capable of supporting the Community’s expanding integration agenda.
“The new 50-50 funding formula is essential to maintain the operational integrity of all EAC organs,” the communiqué issued after the summit stated.
According to the communiqué, the reform will strengthen the institutional capacity of the regional bloc as it positions itself within the evolving framework of the African Continental Free Trade Area.
The Heads of State also directed the Council of Ministers to enforce full compliance with the new payment schedule, stressing that fiscal discipline remains critical for the bloc’s continued expansion and the integration of newer members.
In a parallel decision, the summit granted a waiver of 50 percent of all outstanding arrears owed by Partner States, provided the remaining balances are settled in full within two years from March 7, 2026.
Leaders further addressed enforcement of financial obligations by instructing the Council to finalise a comprehensive schedule of sanctions aligned with the new contribution framework.
The Council is expected to present a progress report on these measures during the 26th Meeting of the Summit.
Beyond financial reforms, the summit outlined governance measures intended to reinforce the pace of regional integration.
Partner States were directed to resolve all reported non-tariff barriers to trade by June 30, 2026, a step considered vital for strengthening intra-regional commerce.
The summit also ruled that the quorum for meetings of all Community organs shall henceforth be two-thirds of Partner States, a provision that takes immediate effect.
In addition, leaders formally launched the Seventh EAC Development Strategy covering the period 2026 to 2031 and instructed both the Council and the Secretariat to mobilise adequate financial and technical resources to ensure its effective execution across the region.
The summit further assented to the EAC Appropriation Bill 2024 today.
