EAC Parliament and Court Suspension Proposed Amid Financial Crisis

The East African Community (EAC), comprising nearly 305 million people and recognized as Africa’s most integrated and fastest-growing economic bloc, is grappling with severe financial challenges.

By the close of its 2023/24 financial year on May 17, the EAC had received only half of its $104 million budget, highlighting significant delinquency among its member states.

The Democratic Republic of Congo (DRC), which joined the EAC in 2022, has yet to contribute any funds, accumulating a debt of $14.7 million. Burundi owes $12 million, and South Sudan, despite its President Salva Kiir holding the rotating EAC Chair, owes $8.6 million.

In contrast, only Kenya has fully met its financial obligations. Rwanda, Uganda, and Tanzania have relatively smaller arrears, owing $2.7 million, $960,774, and $122,694 respectively.

In light of these financial woes, several proposals have been suggested to address the budget shortfall and ensure more efficient management of the EAC’s resources:

1. Leadership Restrictions: Leaders from countries that have not paid at least 75% of their dues should be barred from chairing the EAC. This would incentivize member states to meet their financial commitments.
2. Empowering Kenya: Given its track record of prompt payments, Kenya should be allowed greater influence in the decision-making process of the EAC.
3. Performance-Based Salaries: EAC staff salaries should be pegged to their respective countries’ contributions. Staff would receive only the percentage of funds remitted by their nations, ensuring that non-paying countries bear the consequences of their financial negligence.
4. Cost-Cutting Measures: The EAC could consider suspending its East African Parliament, which has an annual budget of nearly $18 million, and transforming the East African Court of Justice, with a budget of $4.5 million, into a circuit court. These institutions could be reinstated when the region’s financial situation improves.

Despite the efforts of seasoned politicians like Uganda’s President Yoweri Museveni to promote unification within the East African bloc, these financial challenges pose a significant obstacle.

Until member states demonstrate better fiscal discipline and governance, the dream of a fully integrated and prosperous EAC remains elusive.