Fragmented budgets: EAC countries on their own 

With Uganda, Kenya, Tanzania, and Rwanda 2025/26 budgets now known, the region seems to be focusing on human capital and infrastructure development, debt servicing, and fiscal stability.

But from the look of things, each country is on its own, with little emphasis on regional integration.

Uganda

In Uganda, government will spend Shs72.3 trillion, of which URA will collect Shs36 trillion, a slight reduction from the Shs36.7 trillion, while the rest will come from the budget and project support, and borrowing. 

The key focus will be to kick-start the ten-fold growth to $500b by 2040 from the current $53b. 

Finance Minister Matia Kasaija says government will also seek to reduce external borrowing and accumulation of domestic arrears by transforming how it plans, implements, and monitors public investments. 

But the budget also highlights challenges faced by URA, including limited data sharing across government agencies, rising smuggling activities, a large informal sector, high staff turnover, and reluctance by taxpayers to adopt new technologies. 

Shs11.4 trillion will go to human capital development, Shs9.9 trillion to governance and security, and Shs6.3 trillion to transport infrastructure. 

Kenya 

Across the border, Kenya’s Shs117 trillion (Ksh4.2 trillion) is an increase from Shs110 trillion (Ksh3.95 trillion), with education and infrastructure taking center stage.
 
Education takes Shs19 trillion (Ksh701.1b), followed by energy, infrastructure, and ICT, with a combined allocation of Shs14 trillion (Ksh500.7b).  But also of key focus is agriculture, micro, small, and medium enterprises, housing, healthcare, and the digital economy. 

Tanzania

For Tanzania, it has set out to spend Shs78.6 trillion (Tsh57.04 trillion), prioritising debt servicing, wages, and preparations for the upcoming general elections and the 2027 Africa Cup of Nations (Afcon). 

Tanzania will seek to cut reliance on foreign aid by enhancing domestic revenue collection and implementing policies that attract investment, create jobs, and improve lives. 

The country expects to collect tax and non-tax revenue, totaling Shs46.37 trillion (Tsh34.1 trillion).

Rwanda 

Rwanda's 7.03 trillion Francs (Shs17.5 trillion) budget focuses on sustaining economic growth, improving social welfare, and mitigating climate change effects. 

Government will spend 59.6 percent of its budget, or 3.393 trillion Francs (Shs8.5 trillion), on enhancing agriculture productivity, job creation, private sector development, and improving access to electricity clean a $47m (Shs173b) boost from China will seek to increase agriculture and livestock productivity and industrialisation. 

The budgets above, experts say, reflect the countries' unique economic challenges and opportunities, but provide little hope for the EAC integration agenda. 

Dr Susan Kavuma, the head of department of policy and development economics at Makerere University, says that whereas Uganda and Kenya's budgets are aligned, Tanzania is not, while at the same time Uganda fails to prioritise debt servicing, yet it takes about 37 percent of its budget. 

“Prioritising human capital, infrastructure, and governance is good, but it would be better to tackle real problems,” she says, noting that in Uganda’s case, the budget should specify how the priorities will impact the real problems, such as unemployment. 

She further notes that judging from the budgets presented, each EAC member state is on its own. 

On the other hand, Dr Fred Muhumuza, an economist, says that across the region, debt servicing remains a challenge and is likely to present challenges in meeting set priorities. 

He also notes that budgets remain silent on the regional integration agenda.
 
“I would not even call them partners as there is nothing serious binding them besides proximity,” he says.

Kenyan-based business and financial expert, Dr Alykhan Satchu, says the “integration agenda for now is somewhat on the back burner and it is increasingly looking like individual countries are rowing their boat”. 

Global shocks 

However, Secretary to Treasury Ramathan Ggoobi says that while a coordinated approach to economic growth is important, EAC states have agreed to work towards cushioning their economies from global shocks and safeguarding macroeconomic stability. 

Beyond this, he says, across the region, member states are working on shared priorities such as infrastructure development, for example, roads, railways, electricity, and urban infrastructure. 

“The three nations that won the Afcon2027 hosting bid (Kenya, Tanzania, and Uganda) agreed to prioritise construction of stadia and related facilities ahead of the tournament,” he says, noting that other shared priorities include domestic revenue mobilisation, job creation, and human capital development.
 
However, while Ggoobi is optimistic about EAC's progress, he notes the region continues to face the challenge of tariffs and non-tariff barriers.
 
“This is what our leaders, both at national and regional levels, need to address decisively,” he says, noting that despite the isolated challenges, EAC economies have recorded some of the fastest-growth rates across the globe. 

East African central banks indicate that the region will this year grow by 5.7 percent, from 5.1 percent last year.

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