The East African Community (EAC) faces an acute staffing shortage in the face of budgetary shortfalls blamed on a high default rate by member states, which has made the secretariat to exhaust the General Reserve Fund. The account now has a paltry $23.

 

The immediate consequence of this is that retiring employees are going without pay.

With a funding gap of $89 million, nearly half of the temporary workers have been sent home, and the bloc’s council warns that, without urgent recruitment and new remittances, the secretariat will struggle to run operations and the separation process.

The EAC Council of Ministers, meeting in Arusha from May 18 to 22, raised the alarm, noting in its report that, of the 439 established posts at the secretariat, some 163 critical positions remain vacant.

The Council, chaired by Edith Mwanje – Uganda’s Permanent Secretary for EAC Affairs in the absence of a substantive minister – said: “To make matters worse, another 43 current staff members are expected to leave by June 2027, increasing the number of vacancies to be filled and deepening the crisis further.”The staffing crisis is partly caused by council’s failure to agree on contract extensions.

Essential agencies such as the East African Court of Justice (EACJ) are operating with skeleton staff, severely affecting the dispensation of justice.

The crisis is tied to massive budget arrears.

Half of the EAC partner states have defaulted on their financial contributions, leaving the secretariat unable to fund recruitment or sustain employees’ salaries.

At the meeting in Arusha, the council directed that recruitment takes place in three phases to address the shortages identified.“The secretariat, fully aware of the financial constraints, has proposed a phased recruitment plan to address this challenge,” the council said in its report.“Phase One, in the 2026/27 financial year, will focus on filling 95 of the priority positions across all organs and institutions. Phase Two will replace the 61 staff due to depart this year and a few extra and early next year, while Phase Three will cover the remaining 50 vacancies.”Despite the recruitment directive, the EAC Secretariat still faces another financial dilemma.

A section of staff who left in 2025, as well as those expected to leave by June this year, could miss out on their gratuity.

The secretariat used the money, leaving $23 in the Fund that serves as a safety net.

Its primary purpose is to act as a bridging mechanism to ensure the smooth operation of EAC organs and institutions, such as funding salaries and suppliers, when member states delay remitting their annual budget contributions.“The General Reserve account of the EAC Secretariat has a balance of $23, and there has not been any disbursement to the account since February 27, 2025, despite partner states remitting funds beyond September 2025,” the council said.

The council cautioned the EAC Secretariat, stating that future withdrawals from the Fund must adhere to the laid down regulations and procedures.“Regulation 32(2) of the Financial Rules and Regulations, 2012, requiring that the use of funds from the General Reserve should get prior approval of the council, has not been complied with by organs and institutions of the community,” the report says.

Ayason Mukulia, Chairperson of the Committee on Legal, Rules and Privileges in the Eala, told The EastAfrican that his team had brought up the issue in many reports, “but nothing has been done”.

At the last EAC Summit, the presidents pushed a reform package that seeks to cure default in the form of a new funding formula, alongside a robust schedule of sanctions for non-paying member states to stabilise operational budgets.

Member states now contribute 50 percent of the budget equally and 50 percent based on their economic strength (Gross Domestic Product – GDP), effective July 2026.

The leaders waived 50 percent of historical arrears, provided member states clear the balance within two years.

In an effort to control rapidly escalating administrative costs, the summit resolved that, effective December 2027, member states’ parliaments would directly pay salaries of their Eala lawmakers, with the regional bloc only responsible for allowances.

On Monday, the EAC tabled a proposed budget of $110.9 million for the 2026/27 financial year, developed under a new funding formula as directed by the heads of state summit in Arusha on March 7, 2026.

Rebecca Kadaga, chairperson of the EAC Council of Ministers and Uganda’s Minister for EAC Affairs, presented the budget to the lawmakers.

Chairperson of the General-Purpose Committee, Usi Makame, told The EastAfrican that Eala expects partner states to adhere to the directives of the heads of state summit.“The presidents spoke clearly on funding. As Eala, we shall not contradict the heads of state but expect partner states to remit their contributions on time as directed,” Makame said.

The EAC Secretariat has been allocated $59.7 million for the 2026/27 financial year, slightly higher than in the current year, reflecting its role in coordinating regional programmes and projects.

The regional parliament will receive $19 million, a modest reduction from the previous year’s allocation, while the remainder will be distributed among the other EAC institutions.

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