Kenya has become the most dependable financial contributor to the East African Community (EAC), having fully met its funding obligations by June 2024. While Kenya has fulfilled 100% of its assigned contributions, other member states have fallen behind, causing a budget shortfall that threatens the bloc’s operations.
The EAC had expected to raise USD 75 million (KSh 9.67 billion) for the financial year, but by June, it had only received about USD 39.8 million (KSh 5.15 billion). This leaves a gap of over USD 35 million (KSh 4.52 billion), making it difficult for the community to maintain its programs and services.
According to Principal Secretary Caroline Karugu from the State Department for EAC, the delays in remittances are creating significant operational setbacks. Speaking at a retreat for the National Assembly Committee on Regional Integration, she explained that the late payments from countries like the Democratic Republic of Congo (DRC), South Sudan, and Burundi have made it harder for the EAC to carry out critical initiatives.
The impact of these delays is already being felt. Important agencies such as the Lake Victoria Basin Commission and the Lake Victoria Fisheries Organisation are struggling to implement their projects. Some programs are stalling, and the community is facing difficulties in covering salaries and sustaining essential activities.
Karugu urged member countries to find lasting solutions to the financial challenges. She recommended exploring alternative and sustainable financing methods to ensure the EAC can continue functioning smoothly.
In related developments, EAC member states have committed to creating a shared regional currency by 2031. During the 28th Monetary Affairs Committee (MAC) meeting held in Mombasa, central bank governors, including Kenya’s CBK Governor Kamau Thugge, discussed the progress toward establishing the East African Monetary Union (EAMU). They reviewed policy harmonisation steps and endorsed a regional payment system masterplan designed to simplify cross-border transactions.
Lucky Anyanje