Cash crisis cripples operations of the East African Community

The East African Community is facing an unprecedented financial crisis that threatens to paralyse its operations, raising concerns about the future of the eight-nation bloc.

Documents obtained by the Star reveal that the community’s secretariat, the East African Legislative Assembly, and other key organs are struggling to meet basic operational costs, including salaries for Members of Parliament.

Attempts to reach Foreign Affairs PS Korir Sing’oei on the status of EAC and the community’s secretariat on the current crisis were futile.

According to EALA MPs, many have not received their salaries for months, a situation that has made it difficult for some to service bank loans and meet personal financial commitments.

“We have not been paid for about four or five months now. The situation is serious and needs immediate action,” EALA MP David Sankok told the Star.

“The last time I took a loan, I was at the University of Nairobi. But I want to tell you that most of our colleagues have committed their salaries towards loan repayment and only survive on allowances.” 

In a recent correspondence to MPs, EALA clerk Alex Obatre confirmed the delays and the dire financial crisis.

 “As you are aware, the community is facing dire liquidity challenges to the extent that we are struggling to convene activities or pay February salaries, including the settlement of previous salary obligations,” he wrote.

EAC secretary general Veronica Nduva has also expressed concern over the delays, writing to Obatre to seek clarity on unpaid salaries.

This was after a bank in Tanzania, where the MPs had secured loans, demanded to know that the lawmakers were not being paid to facilitate the repayment of the loan.

“Please explain why the salaries of the members have not been paid since November 2025 as indicated by KCB Bank Tanzania Limited,” Nduva asked in a letter highlighting the bank’s request for repayment of outstanding loan installments.

The community’s main budget covers the secretariat, EALA and the East African Court of Justice.

According to EAC budget documents, outstanding contributions from member states towards it stand at Sh11.52 billion as of January 28, 2026 for the 2025-26 financial year alone.

Arrears from previous years add another Sh7.01 billion, with only Kenya and Rwanda having fully cleared past commitments.

Some member states have made little to no contributions this financial year.

Kenya and Tanzania have made 100 per cent of their contributions, amounting to Sh896.06 million each.

Overall, only Sh2.74 billion — or 38 per cent of the annual budget — has been received. Each country is expected to contribute Sh896 million annually to the EAC’s main budget.

Additional arrears are evident in other EAC organs.

For the Inter-University Council of East Africa, member states owe Sh2.35 billion, with only Kenya and Tanzania having paid in full.

Contributions to the Lake Victoria Fisheries Organisation (LVFO) remain incomplete, with Sh279.29 million outstanding.

The EAC was formed to foster regional integration and economic development. It serves as a platform for cooperation among Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo and Somalia.

Its organs include the EAC Secretariat, which coordinates programmes; EALA, the legislative arm responsible for oversight and enactment of laws to facilitate regional integration; and the East African Court of Justice, which ensures adherence to community treaties.

EALA MPs play a critical role in legislating and scrutinising the implementation of EAC policies, including budgets and development initiatives.

The assembly also oversees projects affecting trade, infrastructure, education and environmental management across member states.

However, the current financial crisis has stalled this oversight function, raising fears of governance gaps at a time when regional integration is increasingly critical.

The financial crisis now threatens the very foundations of regional integration.

The EAC’s ambitious programmes, including infrastructure projects, harmonised trade policies and education initiatives, depend on reliable funding from member states.

Without timely contributions, the community risks failing to meet obligations under key treaties, potentially igniting political tensions among member states.

EALA MPs, already struggling with unpaid salaries, face challenges in performing their legislative duties effectively.

“There is an urgent need for member states to honour their commitments. The EAC is not just a secretariat; it is a lifeline for regional development and cooperation,” Sankok said.