Every June, attention across East Africa turns to the East African Legislative Assembly (EALA), as lawmakers debate on how the East African Community (EAC) intends to spend its money in the coming financial year.
The discussions often focus on headline figures — how much has been allocated, which institutions will receive funding and whether member states have paid their contributions. Yet behind the annual budget lies a lengthy process involving technical planning, political negotiations and legislative scrutiny.
Understanding how the budget is prepared, approved and financed offers a clearer picture of how the regional bloc turns its integration agenda into action.
Where the Process Begins
The budgeting cycle starts at the EAC Secretariat in Arusha, Tanzania.
Months before a new financial year begins, EAC organs and institutions submit their proposed programmes and funding requirements. These include the Secretariat itself, EALA, the East African Court of Justice (EACJ), the Lake Victoria Basin Commission, the East African Health Research Commission and several specialized agencies operating under the Community.
Officials at the Secretariat then consolidate the requests into draft estimates, weighing them against available resources and the priorities agreed upon by Partner States.
The result is a proposed budget intended to support the Community’s objectives in trade, infrastructure, health, education, governance and regional integration.
The Council of Ministers Takes Over
Once the draft estimates are prepared, they are submitted to the EAC Council of Ministers, the bloc’s principal policy-making organ.
The Council reviews the proposed allocations, assesses priorities and determines whether the estimates align with the direction set by Heads of State and previous summit decisions.
This stage often involves difficult choices. Demand for funding routinely exceeds available resources, forcing policymakers to decide which programmes receive priority and which must wait.
After review, the Council approves the estimates for presentation to EALA.
EALA’s Turn to Scrutinize
The budget then moves to the legislative stage.
The Chairperson of the Council of Ministers presents the annual budget speech before EALA, outlining the economic outlook, achievements from the outgoing financial year, planned activities and proposed expenditures.
From there, lawmakers begin examining the numbers.
Committee sessions and plenary debates provide members with an opportunity to question officials, seek clarification on spending priorities and assess whether institutions have delivered value for money.
Debates frequently touch on familiar concerns: delayed implementation of projects, staffing shortages, unpaid contributions from member states and the Community’s continued dependence on donor support.
These discussions are often among the most closely watched proceedings at EALA because they reveal both the ambitions and limitations of regional integration efforts.
Approval Through the Appropriation Bill
After debate and consideration of committee recommendations, EALA votes on the budget estimates.
The Assembly then passes an Appropriation Bill authorizing expenditure for the financial year.
Only after this legislative approval can the Community legally access and spend the funds allocated under the budget.
Like many national governments, the EAC cannot spend money that has not been approved through the budget process.
Who Finances the EAC?
The answer appears straightforward at first glance.
The Community draws its funding from three main sources:
- Contributions from Partner States;
- Development partner support;
- Internally generated revenue and other receipts.
For the 2025/26 financial year, EALA approved a budget of roughly USD 109 million. Budget estimates showed Partner States and internal revenues contributing the majority of the approved funding, while development partners were expected to provide the remainder.
Yet annual budget figures capture only part of the Community’s financing picture.
The Shift to an Equity-Based Contribution Model
For years, EAC member states contributed to the Community using a largely equal-sharing arrangement.
The system reflected the principle that all members, regardless of economic size, should participate equally in supporting regional institutions.
Over time, however, the arrangement came under increasing strain.
Several countries accumulated arrears, while differences in economic capacity made equal contributions more difficult for some governments than others.
In March 2026, EAC Heads of State approved a new equity-based financing model aimed at addressing those challenges.
Under the new framework, all Partner States continue to make an equal base contribution, preserving the principle of equal membership. Additional contributions are then determined according to the relative size of each country’s economy.
Supporters of the reform argue that the model better reflects economic realities across the region while helping the Community secure more predictable financing.
The Summit also approved a waiver of 50 percent of outstanding arrears owed by member states, giving governments an opportunity to reduce historical debts as the new system takes effect.
The move marked a significant shift in how the bloc intends to finance itself in the years ahead.
Why Donor Funding Remains Central
Although member states finance most of the annual budget approved by EALA, many of the programmes associated with regional integration depend heavily on external funding.
Projects supporting trade facilitation, health systems, climate adaptation, agricultural development, research, digital transformation and institutional strengthening are frequently backed by development partners.
As a result, donor support extends far beyond the figures reflected in the annual budget debate.
This is one reason discussions about financial sustainability continue to surface at EALA sessions. Legislators have repeatedly questioned how quickly the Community can advance its ambitions if a substantial portion of programme financing originates from external partners.
The newly adopted financing model is expected to strengthen domestic resource mobilization, but reducing reliance on donor support is likely to be a gradual process rather than an immediate one.
How the Money Is Distributed
Once approved, funds are allocated among EAC institutions according to their mandates and approved programmes.
The EAC Secretariat typically receives the largest share because it coordinates implementation across the Community.
Funding is also directed to institutions such as EALA, the East African Court of Justice, the East African Health Research Commission, the East African Kiswahili Commission, the East African Science and Technology Commission and other agencies tasked with implementing regional programmes.
The allocations determine what projects move forward, which initiatives expand and how effectively institutions can carry out their responsibilities.
Implementation and Oversight
Approval of the budget is not the end of the process.
The EAC financial year runs from July 1 to June 30, during which institutions are expected to implement approved programmes and account for how funds are spent.
Audits, financial reports and committee reviews provide oversight throughout the year. EALA continues monitoring expenditure and programme performance long after the budget vote has concluded.
The process is intended to ensure that resources approved on paper translate into measurable outcomes across the region.
A Budget Under Transition
The annual EAC budget is often presented as a collection of figures and expenditure lines. In reality, it reflects broader debates about the future of regional integration, financial sustainability and the balance between domestic and external financing.
The adoption of an equity-based contribution model signals an effort by Partner States to place the Community on a stronger financial footing. At the same time, development partners continue to finance many of the programmes that support integration across East Africa.
That combination explains why budget debates at EALA increasingly focus on more than expenditure alone. They are also debates about how the Community intends to fund its ambitions in the years ahead.
As East Africa pursues deeper economic and political integration, the question is no longer simply how much money the EAC spends. It is how the Community intends to finance a growing agenda while building a system that remains sustainable for decades to come.
