ARUSHA: THE East African Community (EAC) has adopted a new financing formula requiring partner states to contribute equally and according to their economic capacity, replacing the previous funding arrangement used by the regional bloc.
The decision was announced in a communiqué read by the outgoing EAC Secretary General, Veronica Nduva, following the 25th Ordinary Summit of the EAC Heads of State held in Arusha yesterday.
Under the new arrangement, partner states will contribute 50 per cent equally and 50 per cent based on assessed economic capacity, replacing the earlier formula adopted at the 23rd summit that required 65 per cent equal contributions and 35 per cent assessed contributions.
Outgoing chairperson William Ruto said the revised model would make financial obligations fairer and more sustainable for member states.
“We agreed to make contributions to the community fair and equitable by revising the formula so that 50 per cent is shared equally and 50 per cent assessed according to economic capacity,” President Ruto said.
He added that the new arrangement would enable the community to operate more effectively while ensuring that countries with larger economies contribute proportionately more to the bloc’s budget.
The new financing framework will take effect from July 1, 2026, with partner states directed to implement the decision without further consultations by the Council of Ministers.
The summit also adopted a one-off measure to address outstanding financial obligations by waiving 50 per cent of arrears owed by partner states, provided the remaining balance is settled within two years from March 7, 2026.
In another decision, the summit resolved that members of the East African Legislative Assembly will have their salaries paid by their respective national parliaments beginning December 2027, after completion of the current assembly’s tenure.
The leaders also received the Secretary General’s report on the management and operations of community organs and institutions and approved a two per cent increase in staff remuneration effective from January 2027.
On regional security, the summit reviewed progress in the implementation of the EACled Nairobi process aimed at restoring peace in eastern parts of the Democratic Republic of the Congo.
The Heads of state called on all parties involved in the conflict to immediately cease hostilities and recommit to peaceful dialogue while urging the African Union to provide financial and logistical support to mediation efforts aimed at achieving lasting stability in the region.
The summit was attended by six Heads of state, including host Samia Suluhu Hassan, William Ruto, Yoweri Museveni, Salva Kiir Mayardit, Hassan Sheikh Mohamud and Évariste Ndayishimiye.
Leaders from Rwanda and the Democratic Republic of the Congo did not attend the meeting.
Meanwhile, incoming chairperson Yoweri Museveni emphasised the importance of deeper regional integration to expand markets and create prosperity.
“If we do not create a bigger market for our producers, we shall not create prosperity for our people,” President Museveni said.
He noted that economic integration within East Africa would enable businesses to expand production, increase trade and generate employment across the region.
President Ruto, while handing over the chairmanship, said the community had made notable progress in advancing regional integration, including growth in intra-EAC trade and stronger private sector participation in regional development.
“We have seen trade among partner states grow significantly, demonstrating that regional integration is beginning to deliver tangible economic benefits for our people,” he said.