By KPC Reporter
The East African Community (EAC) has approved a budget of USD 110.86 million (approximately KSh 14.3 billion) for the 2026/2027 financial year, with a strong focus on boosting regional trade, industrial development, social integration, infrastructure, security, and institutional capacity across the bloc’s eight member states.
The budget, unveiled under the theme “Deepening Regional Integration and Economic Resilience through Improved Regional Security, Domestic Revenue Mobilisation and Digital Transformation for Inclusive Growth,” marks the beginning of the implementation of the EAC’s Seventh Development Strategy (2026/27–2030/31).
According to the budget highlights, 58 percent of the funding, equivalent to USD 64.77 million, will come from Partner States and internal revenues, while 42 percent, or USD 46.1 million, will be provided by development partners.
“The Financial Year 2026/2027 marks the beginning of the implementation of the 7th EAC Development Strategy anchored on the theme ‘Deepening Integration for Improved Livelihoods of EAC Citizens’,” the Community states in the budget document.
Among the key priorities for the new financial year is the promotion of inter- and intra-regional trade through stronger value chains and legal reforms, which has been allocated USD 11.05 million. Another USD 7.2 million will support production, productivity, and industrial development through value addition in key sectors.
The Community has also earmarked USD 10.67 million for strengthening social integration through improved access to quality social services and enhanced social cohesion among East Africans.
Efforts to advance the East African Monetary Union will receive USD 4.12 million, while USD 3.94 million has been allocated to infrastructure projects aimed at improving trade, mobility, and regional competitiveness. Peace, security, governance, and defence integration programmes will receive USD 3.42 million.
The largest share of the budget, however, will go toward strengthening EAC institutions and improving service delivery, compliance, coordination, and accountability. This priority area has been allocated USD 70.46 million.
The budget follows a year in which the Community reported significant achievements. Intra-EAC trade grew by 28 percent, rising from USD 15.2 billion in 2024 to USD 19.3 billion in 2025, reflecting the benefits of customs union reforms and improved regional connectivity.
The EAC also launched the EAC Customs Bond (EACBond), a regional digital guarantee scheme designed to ease the movement of goods across borders under a single financial security. The Community further resolved 35 out of 61 reported non-tariff barriers, helping facilitate trade within the region.
In the health sector, nine regional Centres of Excellence provided specialized care to more than 12,500 patients, including 270 renal transplants and 12,000 cancer treatments. The Community also deployed 10 mobile laboratories and testing kits to support rapid responses to Mpox and Ebola outbreaks.
Other milestones included the completion of the Maritime Rescue Coordination Centre in Mwanza, deployment of rescue boats on Lake Victoria, progress on the East Africa Crude Oil Pipeline, and the passage of six regional laws by the East African Legislative Assembly.
“The Community recognises and appreciates the continued cooperation and support from Partner States, Development Partners and other stakeholders in the implementation of the Integration agenda,” the budget document notes.
The EAC comprises Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo, and Somalia, with its headquarters in Arusha, Tanzania.
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