Many programmes of the East African Community (EAC) have stalled in the past few months due to a cash crunch blamed on non-remittance of dues amounting to about $40 million by partner States.
By press time, some of the regional body’s workers were yet to be paid their May 2024 salaries, and a number of organs and institutions had suspended their activities due to lack of budget.
The East African Court of Justice (EACJ), the region’s legal watchdog, announced that it was suspending sessions due to financial constraints.
The regional parliament also indicated it would not be sitting because of lack of funding.
The EACJ cancelled its sessions for June 2024, which were scheduled for Kigali, due to lack of funds.
In a statement, the court informed the public that cases before the First Instance Division and the Appellate Division, which were expected to take place in June, would not be heard.
“The East African Court of Justice deeply regrets to inform its esteemed stakeholders, particularly litigants and the general public, that there will be no scheduled session of the First Instance Division in June 2024,” it said.
“Owing to delayed remittances from the partner States, the court was unable to conduct the May 2024 session of the Appellate Division, and the June 2024 session of the First Instance Division will not be convened as scheduled.”
Established in 1999 and headquartered in Arusha, the court hears cases from all member States.
The court convenes quarterly, in March, June, September, and November for the First Instance Division, and in February, May, August, and November for the Appellate Division.
Now, there is no telling when the cases pending before it will be heard, as the cash drought persists in Arusha, where an administrative vacuum created by the recall of secretary-general Peter Mathuki persists.
A replacement, Kenyan Principal Secretary for Performance and Delivery Management in the Ministry of Public Service Veronica Nduva, was nominated and endorsed by the Council of Ministers in April, but the Heads of State Summit is yet to swear her in.
Deputy Secretary-General in charge of Customs, Trade and Monetary Affairs Annette Ssemuwemba has been acting secretary-general since the controversial sacking of Dr Mathuki and his subsequent deployment to Russia as ambassador.
Dr Mathuki was known to solicit grants, donations and other kinds of support for the regional body to supplement the budget, which is mainly funded by member States’ contributions. Aid and development partners form a part of the budget support.
The Secretariat tabled before the East African Legislative Assembly (Eala) budget estimates totalling $103,842,880 for the 2023/2024 Financial Year. But 40 percent of the budget is yet to be funded.
A meeting of EAC Speakers and Clerks of national legislatures and the Eala met in Nairobi on Wednesday over issues affecting the legislatures and funding was top of the agenda.
The meeting heard that seven of the eight EAC partner States are yet to remit their full contributions for 2023/24 financial year.
Only Kenya has up-to-date remittance records at the EAC. Tanzania, Uganda and Rwanda have relatively small balances.
According to documents seen by The EastAfrican, some $39,883,765 from the partner States was outstanding as at May 17, 2024.
Moses Wetangula, Speaker of the Kenya National Assembly, expressed concern over the state of affairs at the regional bloc.
Speaking to The EastAfrican after the Nairobi meeting, which discussed how to encourage partner States to remit their contributions on time, he said: “We encourage the executives in the countries to ensure that budgetary expectations and provisions are met. Kenya is okay; we meet our obligations studiously. There are other countries that haven’t and we have told them to try and pull up.”
Of the $103 million budget, the Secretariat gets at least 50 percent to finance its operations.
Each partner State was expected to remit $7.35 million this financial year but by May 17, 2024, Burundi was yet to remit $12.7 million.
The Democratic Republic of Congo, which joined the EAC last year, is yet to remit a single cent to the EAC and has an outstanding bill of $14.7 million.
Somalia, the latest entrant into the bloc, is still tackling admission procedures and is yet to send its MPs to the regional assembly.
South Sudan, whose President Salva Kiir chairs the EAC Heads of State Summit, was yet to remit $8.6 million.
Rwanda’s outstanding remittances stand at $2.7 milion; Uganda $960,774; and Tanzania $122,694.
Kenya, Tanzania, Uganda and Rwanda have been consistent in remitting their dues, keeping the Secretariat and its organs going.
Currently, it’s only President William Ruto’s government that has fully remitted its contributions to the EAC.
“We have no policy in place to force EAC partner States to remit their contributions, but we are encouraging through our forum to find a way of reminding their countries to remit their dues on time,” Speaker Wetang’ula said on Wednesday.
The failure to remit partner States contributions has affected nine priorities that the region planned to focus on in the current fiscal year.
These are strengthening of regional governance processes, and domestication of regional and international commitments for sustainable peace and stability; increasing sensitisation, visibility, knowledge, awareness and participation of the private sector, citizens and other stakeholders in the EAC integration process; and harmonisation of trade-related policies, laws and regulations, and streamlining of customs and trade facilitation systems for increased trade and investment.
This week, Eala said that lack of funds is affecting its calendar.
Speaker Joseph Ntakirutimana acknowledged that ‘some countries are facing financial challenges and, therefore, have not been able to meet their obligations’.
“We talked to some countries, and I can assure you that money is coming in. We will definitely have some of the programmes on course,” Mr Ntakirutimana said.
The 2023/2024 Budget was allocated to the EAC Organs and Institutions as follows: EAC Secretariat, $50,931,553; East African Court of Justice, $4,450,488; East African Legislative Assembly, $17,681,365; Lake Victoria Basin Commission, $8,471,980; Inter-University Council for East Africa, $12,394,945; and Lake Victoria Fisheries Organisation, $2,807,993.
The East African Science and Technology Commission was allocated $2,016,543; East African Kiswahili Commission, $1,502,535; East African Health Research Commission, $2,193,811; and East African Competition Authority, $1,391,667.
