In East Africa, regional community faces crisis as members fail to pay over $80m in outstanding contributions

Financial records show that as of late January 2026, only $21.4 million, about 38 per cent of the expected $56 million annual contribution to the EAC’s main budget, had been paid. Total arrears stood at $54.78 million, pushing the overall outstanding balance to roughly $89 million, the Citizen reports.

The cash shortfall has disrupted operations within the regional body. A leaked internal memo from the East African Legislative Assembly (EALA) warned of “dire liquidity challenges", saying the Assembly was struggling to pay salaries and allowances. Some parliamentary activities have been slowed or suspended due to the funding gap.

Tanzania and Kenya have reportedly met their full contributions for the 2025/26 financial year, while Uganda has paid most of its dues. However, several member states, including Burundi, South Sudan, Somalia and the Democratic Republic of Congo, have not made payments this year.

Under the EAC Treaty, partner states are required to finance the operations of the community. The treaty allows for sanctions against countries that fail to meet their obligations, including possible suspension of benefits. However, enforcement has historically been weak.

Regional leaders are expected to discuss the crisis at an upcoming summit, where analysts say tough decisions may be needed to prevent further strain on the bloc.