The East African Legislative Assembly (EALA) will convene a special virtual sitting next week to debate and table the East African Community’s proposed $110.8 million budget for the 2026/27 financial year, as a worsening financial crisis triggered by unpaid member state contributions continues to strain the regional bloc.
The Assembly said lawmakers will meet online on June 1 to scrutinise the budget estimates approved by the EAC Council of Ministers, marking another key institutional process taking place virtually as the organisation grapples with severe liquidity pressures.
The proposed budget totals $110.86 million and will finance activities across EAC organs and institutions, with the largest allocation of $59.76 million going to the EAC Secretariat, while EALA itself has been allocated $19.16 million — slightly lower than the previous financial year. The Assembly is also expected to consider a supplementary budget of $4.79 million for the current fiscal year to support urgent funding needs, including pandemic response projects and procurement of ICT equipment.
The virtual sitting comes against the backdrop of deepening financial distress within the eight-member regional bloc, where persistent delays and defaults in statutory contributions have increasingly disrupted operations.
Internal financial records and regional reports indicate the EAC has struggled to meet payroll obligations, fund legislative activities and sustain institutional operations due to mounting arrears from partner states. As of January 2026, only about 38 percent of expected member contributions had been remitted, leaving the bloc facing an outstanding balance of nearly $89.4 million.
The financial strain has already forced extraordinary measures. Last year, the EAC approved internal borrowing from its institutions to keep operations running and facilitate budget-related meetings, including virtual sessions of EALA.
Regional leaders have increasingly acknowledged that the Community’s financing model has become unsustainable. In March, Heads of State approved a new contribution formula that combines equal contributions with capacity-based financing while also granting partial waivers on accumulated arrears in an attempt to stabilize funding. The reforms are expected to take effect in July.
The growing liquidity crisis has reignited questions about the long-term sustainability of regional institutions at a time when the Community has expanded rapidly from three founding members to eight countries, increasing operational costs and institutional demands.
Despite the funding challenges, EALA said lawmakers are expected to debate and provide legislative guidance on the Community’s financial roadmap ahead of the new fiscal year. The session will also administer oaths for newly appointed legislators and marks the first budget process under new EAC Secretary-General Ambassador Stephen Patrick Bundi.
The East African Community currently comprises Burundi, the Democratic Republic of Congo, Kenya, Rwanda, Somalia, South Sudan, Tanzania and Uganda.
