The East African Community (EAC), a regional intergovernmental organization of six member states, is facing a severe financial crisis due to member states' failure to pay their dues. As of March 2025, the collective outstanding amount owed by member states is $58 million, threatening the operations of the EAC Secretariat and essential programs.

The financial crisis was highlighted during a meeting of the EAC Council of Ministers in Arusha, Tanzania, where the cash shortfall was listed as a top agenda item alongside security concerns. The meeting aimed to address the financial crisis caused by a shortage of funds for programs and staff salaries, which is threatening operations at the Secretariat.

The EAC Secretariat, led by Veronica Nduva, has been forced to scale back operations due to the ongoing defaults. The East African Legislative Assembly (EALA) has skipped sittings, and the East African Court of Justice (EACJ) faces a backlog of over 260 cases, worsened by a lack of permanent judges.

The organization is also dealing with a staffing crisis, with 150 vacancies and 30 senior staff set to leave by the end of the financial year. A special retreat is planned for May to address these issues.

The EAC, founded in 1967, aims to promote economic integration, peace, and stability within East Africa. It seeks to foster cooperation in various sectors, including trade, infrastructure development, and security. However, the organization has made significant strides toward creating a common market and political federation but faces challenges related to financial constraints and member states' commitment.

As of March 2025, EAC member states owed $58,048,678 to the bloc, with only Kenya and Tanzania fully paying their contributions. Uganda has paid 99% of its due amount. The lack of consistent budget remittances from partner states has put the future stability of the EAC in jeopardy.

The financial crisis has significant implications for the region, threatening to halt operations across the bloc. The EAC's inability to fulfill its mandate could have far-reaching consequences for economic integration, peace, and stability in East Africa.

In conclusion, the East African Community is facing a severe financial crisis that requires immediate attention from member states. The organization's ability to address this crisis will have a significant impact on the region's economic integration, peace, and stability.