Dar es Salaam. A worsening financial crisis in the East African Community (EAC) is raising tough questions about whether partner states that fail to honour their financial obligations deserve to remain in the regional bloc.
Internal documents and financial records show that the community is struggling to operate due to delayed remittances from several member states, forcing the East African Legislative Assembly (EALA) to delay salaries and suspend planned activities.
A February 24 licked internal memo signed by the EALA Assembly Clerk, Mr Alex Obatre, warns of “dire liquidity challenges” that have made it difficult to pay February 2026 salaries and settle arrears. Parliamentary activities have slowed, while Members of the Assembly have gone months without allowances.
Financial data prepared for the Council of Ministers as well show that as of January 28, 2026, only $21.4 million (38 percent), of the expected $56 million contribution to the main budget had been paid.
Total arrears stood at $54.78 million, pushing the overall outstanding balance to about $89.37 million.
Tanzania and Tanzania have paid their full contributions for the 2025/26 financial year, while Uganda has paid about 81 percent.
Rwanda has paid about 25 percent despite remitting $875,000 in February.
Burundi, South Sudan, Somalia and the Democratic Republic of Congo have not made payments this year, making them the focus of growing criticism.
Treaty obligations
Under the EAC Treaty, partner states are required to support the operations of the community.
Article 143 obliges partner states to provide the funds necessary for running the community, while Article 146 allows sanctions against states that fail to meet their obligations.
These sanctions may include suspension of benefits and other corrective measures. However, enforcement has remained weak.
Regional integration expert Dr Peter Njau said the Community has reached a critical moment.
“The survival of the EAC now depends heavily on the decisions that will be made at the forthcoming Summit,” he told The Citizen in an interview.
“This Summit must decide whether the Treaty will be respected or ignored. Without firm decisions, the community risks institutional collapse.”
He said the financial crisis has exposed a long-standing weakness in enforcing obligations. “For years, compliance has depended on goodwill. That approach is no longer working.”
Summit as a turning point
Kenyan President William Ruto recently called an emergency Summit in March to address the financial crisis.
Experts say the meeting could determine the future direction of the community.
An expert in diplomacy, Dr Frederick Mutebi said the Summit carries unusually with weight because the organisation is now facing an operational crisis.
“This is not just another meeting. It is about whether the EAC remains functional,” he said.
“If Heads of State fail to take decisive action, the institution may continue weakening until it becomes irrelevant.”
He said leaders must agree on binding enforcement mechanisms.
“The Treaty already provides for sanctions. What is missing is the political will to implement them.”
Currency pressures
Economic analyst Dr Biniface Mbani said economic realities have made the situation more difficult than in previous years.
He noted that depreciating national currencies have reduced the real value of contributions made by partner states.
“Exchange rate movements mean that the contributions of a few countries cannot sustain the entire Community the way they did years ago,” he said.
“The financial burden is becoming too heavy for compliant members.”
He warned that relying on a small group of paying countries is unsustainable.
“It may be necessary to rethink the structure of the Community and focus on members that consistently honour their obligations,” he said. “A smaller but reliable bloc could be more sustainable than a large but unstable one.”
Tanzanian EALA MP Dr Abdullah Makame said the situation raises serious concerns about fairness.
“It is not sustainable for some countries to carry the financial responsibility while others do not pay,” he said.
“The community must find a solution that ensures all members meet their obligations including suspension. He said continued non-payment undermines the credibility of the regional bloc. “Membership must come with responsibilities. Without that, integration cannot succeed,” he said.
A defining moment
The EAC has expanded rapidly in recent years, increasing both its membership and operational costs.
However, financial commitments have not kept pace with expansion.
Experts warn that the March Summit could become a defining moment for the regional bloc.
“The Heads of State must make difficult decisions,” said Dr Mbani.
“This is about the future of the EAC. If the financial foundation collapses, everything else collapses with it.”
For now, the question remains whether the Community will enforce its own rules — or continue operating under a system where obligations are optional.
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