William Ruto has called a special summit of the East African Community

Kenyan President William Ruto has called a special summit of the East African Community

(EAC) as the eight-nation bloc grapples with a funding shortfall of US$89.37 million, severely straining its institutions and raising new questions about the future of regional integration. The summit, scheduled for March 7 in Arusha, marks the first formal meeting of the EAC's top decision-making body in over a year. Leaders are expected to discuss a new funding formula and agree on spending rationalization measures as the mounting arrears from partner states continue to hamper core activities. As of January 31, 2026, the EAC's outstanding contributions totaled US$89,372,865. The EAC's arrears: Democratic Republic of Congo - US$27 million; Burundi - US$22.7 million; South Sudan owes US$21.8 million; Somalia owes US$10.5 million; Rwanda owes US$5.2 million; and Uganda owes US$1.1 million. The financial crisis has crippled several institutions, including the East African Legislative Assembly, the East African Court of Justice, and the Inter-University Council of East Africa, which owes US$18.4 million. The EAC has a budget shortfall of over US$89 million, as only a few countries, such as Kenya and Tanzania, are paying their dues in full; Burundi, the Democratic Republic of Congo, and South Sudan are lagging behind. This leads to internal loans (e.g., US$660,000 for EALA meetings) and dependence on development partners (38% of the budget). The consequences are halted projects, unpaid salaries, and restricted operations. The EAC has a budget shortfall of over US$89 million, as only a few countries, such as Kenya and Tanzania, are paying in full; Burundi, the Democratic Republic of Congo, and South Sudan are lagging behind. The funds in the EAC budget (approximately USD 109 million for 2025/2026) are primarily allocated to regional integration, institutions, and infrastructure. The majority of the funds (approximately USD 63 million, or 62%) go to EAC bodies such as the Secretariat (USD 55 million), EALA (USD 20.5 million), and the Court of Justice, to strengthen their capacities. Priorities include regional integration (USD 17.9 million), monetary union (USD 9.4 million), customs union (USD 7.3 million), infrastructure/digitalization (USD 6.9 million), and peace/security (USD 5 million). In a letter, Alex Obatre, Secretary of the House of Representatives, warned of “significant liquidity problems due to delayed remittances from partner states,” noting that only 38 percent of the approved budget had been received by the beginning of February. https://africa.businessinsider.com/local/markets/east-africa-faces-dollar89m-funding-crisis-as-kenyas-ruto-calls-for-emergency-leaders/nfd4pqv https://africa.businessinsider.com/local/markets/east-africa-faces-dollar89m-funding-crisis-as-kenyas-ruto-calls-for-emergency-leaders/nfd4pqv https://www.thecitizen.co.tz/tanzania/news/east-africa-news/eac-borrows-660-960-internally-to-finance-operations-amid-budget-crisis-5065748 https://www.burunditimes.com/understanding-the-eac-2025-26-financial-year-budget-breakdown/