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EAC on the Brink as Member States Default on Payments

Kenyan lawmakers have raised urgent concerns over the East African Community’s financial crisis, warning that repeated defaults by member states are crippling the regional bloc. Despite Kenya’s consistent contributions, MPs say the country receives few benefits in return, and are now calling for sweeping reforms—including potential sanctions against defaulters—to rescue the EAC from collapse.

Kenyan lawmakers have sounded the alarm over a deepening financial crisis within the East African Community (EAC), accusing member states of crippling the regional bloc by repeatedly defaulting on their financial obligations.

During a high-level session with the State Department for East African Community Affairs, members of the National Assembly’s Departmental Committee on Regional Integration painted a bleak picture of the EAC’s current state. They cited delayed staff salaries, stalled development programmes, and a growing disconnect between Kenya’s financial contributions and the tangible benefits it receives.

Committee chairperson Irene Mayaka led calls for a complete overhaul of the EAC’s funding structure, warning that unless urgent reforms are enacted, the bloc’s credibility—and its ability to function—could collapse. “Kenya continues to honour its obligations, yet we’re seeing diminishing returns,” said Mayaka. “This situation is not just unfair—it’s unsustainable.”

MPs demanded legal and policy clarity on enforcement mechanisms, including whether existing EAC treaties permit sanctions or suspension of defaulting member states. Mayaka questioned: “What is the most effective path forward under existing EAC laws and policies?”

The committee reviewed recent findings from the East African Legislative Assembly (EALA), based on sittings in Arusha, Tanzania. The reports reinforced lawmakers’ concerns over stalled programmes, administrative slowdowns, and a demoralised workforce across EAC institutions.

In a bid to keep core functions afloat, lawmakers floated a controversial proposal: allowing individual countries to directly pay the salaries of their nationals seconded to EAC bodies. While the idea garnered cautious support, MPs acknowledged it would likely require amendments to the EAC Treaty and raised concerns about undermining the bloc’s integrity.

Karachuonyo MP Okuome Adipo added a local lens to the discussion, decrying the impact of EAC dysfunction on border communities. “Kenyans are facing serious challenges when it comes to fishing in Lake Victoria,” he said. “Can you guarantee seamless trade with Uganda under the current circumstances?”

His remarks come amid a wider regional backdrop of mounting trade friction and stalled integration efforts, even as the EAC central banks recently adopted a master plan to modernise cross-border payments.

Responding to the committee, Principal Secretary for EAC Affairs Dr. Caroline Karugu admitted that the funding crisis has reached a critical point. “These issues are now on the Summit’s agenda,” she said, referencing the highest decision-making organ of the EAC, which comprises the Heads of State from member countries.

Yet, lawmakers expressed little confidence that diplomacy alone could remedy the structural and financial vulnerabilities threatening the bloc.

Observers warn that the EAC’s fragile financial footing could threaten not only trade and infrastructure projects but also regional peace processes. Kenya has invested heavily in supporting EAC peace initiatives, including the Luanda-Nairobi Process on the Democratic Republic of Congo (DRC).

With continued inaction, MPs fear that Kenya’s role as a regional anchor may be compromised—and that public confidence in regional integration could suffer irreversible damage.