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Economy

Lawmakers want States sanctioned for EAC cash snub

Parliament in session
Parliament in session. FILE PHOTO | NMG 

The Kenyan Parliament wants sanctions instituted on East African Community (EAC) partner States that default on their contributions to the economic bloc.

Kenya says some EAC member States delay remitting their share of contributions to the bloc thereby resulting in default of their financial obligations.

“The committee recommends that the provisions of Article 143 of the Treaty should be enforced to impose sanctions against partner States, which are in default of their financial obligations,” Naisula Lesuuda who chairs the Select Committee on Regional Integration said in a report to the House.

Article 143 of the treaty is however not categorical on specific sanctions to be undertaken as it stipulates that “a partner State which defaults in meeting its financial and other obligations under this treaty shall be subject to such action as the Summit may on the recommendation of the Council, determine.”

Ms Lesuda said at the time of scrutinising the EAC budget, some member States had arrears dating back to the financial year 2016/17 and 2018/19, amounts which are due to various organs within EAC to support its activities.

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At the time of writing the report, Burundi had the highest arrears of $13,766,325, South Sudan ($8,179,189), Uganda ($5,590,622), Rwanda ($3,867,374), Tanzania (2,257,640) and Kenya ($1,077,652). “Kenya, Uganda, Tanzania and Rwanda have over the years been consistent in meeting their financial obligations,” says the report.

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