East African Community Member States Defaulting In Financial Contributions, Threatening Effective Functioning Of Regional Bloc – Say Kenyan MPs

Members of the Committee on Regional Integration

Source: Africa Publicity

Kenya’s National Assembly Committee on Regional Integration has expressed serious concerns over the continued failure by some East African Community (EAC) member states to fulfil their financial obligations, a situation the Assembly says is threatening the effective functioning of the regional bloc, including the timely payment of staff salaries.

In a high-level engagement with the State Department for East African Community to deliberate on reports received from the East African Legislative Assembly (EALA), Members of Parliament voiced dissatisfaction with the benefits Kenya receives despite consistently meeting its financial commitments to the EAC.

The lawmakers called for stronger enforcement mechanisms within the EAC framework to ensure compliance. Some Committee members proposed that persistent defaulters face sanctions, or in extreme cases, be expelled from the Community.

Karachuonyo MP, Hon. Okuome Adipo, raised alarm over trade disruptions affecting Kenyan fishermen.

“Kenyans are facing serious challenges when it comes to fishing in Lake Victoria. Can you ensure seamless trade with Uganda?” he asked.

Committee Chairperson Hon. Irene Mayaka sought clarity on legal and policy measures available to address the current challenges.

“What is the best way forward according to EAC laws and policies to handle the issues the EAC is grappling with?” she posed.

Dr. Caroline Karugo, Principal Secretary for the EAC, acknowledged the difficulties facing the Community and confirmed that the matter is under review at the Summit level.

“I am optimistic that we shall have a way forward for the vibrancy of the Community,” said Dr. Karugo, adding that efforts are ongoing to ensure partner states remit their 2024/25 contributions in line with EAC Financial Rules and Regulations.

Dr. Karugo further encouraged the Committee to address broader issues affecting regional trade, such as the tax environment and ease of doing business, to foster investment across member states.

While the Committee expressed support for a proposal allowing member states to directly pay salaries for their seconded staff in EAC institutions, it emphasized the need for treaty amendments.

These, the Committee argued, are necessary to ensure that financially compliant states receive fair and proportionate benefits and are shielded from economic disadvantage.