[PRESSWIRE] ARUSHA, Tanzania – 2026-03-08 — Leaders of the East African Community have approved a new financing formula requiring partner states to contribute equally and according to their economic capacity, replacing the bloc’s previous funding structure.
The decision was announced in a communiqué issued after the 25th Ordinary Summit of EAC Heads of State held in Arusha on Saturday.
Under the new formula, partner states will contribute 50 percent of the community’s budget equally, while the remaining 50 percent will be assessed according to the size of their economies. The arrangement replaces the previous formula adopted at the 23rd summit, which required 65 percent equal contributions and 35 percent assessed contributions.
Outgoing EAC chairperson William Ruto said the revised structure would make financial obligations among partner states more balanced and sustainable.
“We agreed to make contributions to the community fair and equitable by revising the formula so that 50 percent is shared equally and 50 percent assessed according to economic capacity,” Ruto said.
He said the new arrangement would enable the regional bloc to function more effectively while ensuring countries with larger economies contribute proportionately more.
The financing framework will take effect on July 1, 2026. Partner states were directed to implement the decision without further consultations by the EAC Council of Ministers.
The summit also adopted a one-off measure allowing a 50 percent waiver of arrears owed by partner states, provided the remaining balance is settled within two years from March 7, 2026.
Leaders further resolved that members of the East African Legislative Assembly will have their salaries paid by their respective national parliaments beginning in December 2027, after the completion of the current assembly’s tenure.
The summit also received the Secretary General’s report on the operations and management of community organs and approved a two percent salary increase for staff effective January 2027.
On regional security, leaders reviewed progress in the EAC-led Nairobi peace process aimed at restoring stability in eastern Democratic Republic of the Congo.
They called on parties to immediately cease hostilities and resume peaceful dialogue, urging the African Union to provide financial and logistical support to mediation efforts.
Six heads of state attended the summit including host Samia Suluhu Hassan of Tanzania, William Ruto of Kenya, Yoweri Museveni of Uganda, Salva Kiir Mayardit of South Sudan, Hassan Sheikh Mohamud of Somalia and Évariste Ndayishimiye of Burundi.
Leaders from Rwanda and the Democratic Republic of the Congo did not attend.
Incoming chairperson Yoweri Museveni called for deeper regional economic integration to boost production and prosperity.
“If we do not create a bigger market for our producers, we shall not create prosperity for our people,” Museveni said.
Ruto said the bloc had made progress in advancing regional integration, citing growth in intra-EAC trade and stronger private-sector participation.
Media Contact:Information Services Department and Office of The Chief Government Spokesman E-mail: maelezotv@gmail.comPhone: +255 754 750 765; +255 754 698 856; +255 759 714; +255 713 381 904Availability: EAT, UTC +3
