EAC Sectoral Council on Finance and Economic Affairs and Pre-Budget Consultations Convene to Advance Fiscal Coordination, Trade Policy Harmonisation and Monetary Union Agenda

East African Community Headquarters, Arusha, Tanzania, 11th May, 2026: The East African Community (EAC) has convened the 18^th Meeting of the Sectoral Council on Finance and Economic Affairs (SCFEA) together with the 21^st Meeting of the EAC Pre-Budget Consultations of the Ministers/Cabinet Secretary of Finance from 11^th to 15^th May 2026 in Arusha, Tanzania.

The meetings will consider key matters aimed at strengthening fiscal coordination, customs and trade policy harmonisation, statistics development and implementation of the East African Monetary Union (EAMU) roadmap. They will also review progress on previous decisions and directives, Partner States' budget proposals for FY 2026/27, implementation of the EAC Common External Tariff, sustainable financing of the Community and preparations for the Monetary Union.

In his opening remarks, Dr. Albert A. Musisi, Chairperson of the Session of Senior Officials of the SCFEA and Commissioner for Macroeconomic Policy Department in Uganda's Ministry of Finance, Planning and Economic Development, called on Partner States to uphold the implementation spirit of the 25^th Ordinary Summit of EAC Heads of State, noting that the Summit emphasised timely implementation of decisions and directives rather than unending consultations. He urged delegates to remain result-oriented and focused on practical implementation of regional commitments.

Speaking on behalf of the EAC Secretariat, Mr. Aime Uwase, Director of Planning, noted that the meetings come at a critical moment as the region navigates global and domestic economic challenges while pursuing economic recovery, strengthening resilience to external shocks and deepening regional integration. He commended progress registered in several areas and urged Partner States and the Secretariat to expedite implementation of pending decisions and directives.

Fiscal Coordination and Budget Policy Alignment

The Sectoral Council will consider Partner States' Budget Policy Statements and Budget Framework Papers for FY 2026/27 and medium-term projections, including revenue and expenditure priorities, fiscal deficit targets and debt management plans. The Sectoral Council is also expected to consider a harmonised date for the reading of the 2026/27 national budget speeches and review national budget themes to guide the EAC regional budget theme.

Pre-Budget Consultations and Customs Policy Measures

The 21^st Pre-Budget Consultations will consider outstanding matters from the 20^th Meeting, including implementation of specific duty rates, review of the EAC Rules of Origin, application of the revised EAC Common External Tariff and Partner States' submissions for FY 2026/27.

The Sectoral Council will also review the study and policy analysis on glass and ceramic tiles manufactured in the EAC, with recommendations aimed at supporting regional manufacturing, strengthening value addition, reducing reliance on extra-EAC imports and addressing non-tariff barriers affecting intra-EAC trade.

The meeting will further receive updates on directives concerning excise duties, fees, levies and charges of equivalent effect, including progress in aligning national definitions of "import" with the EAC framework and removing measures that contravene Articles 10 and 15 of the Protocol on the Establishment of the EAC Customs Union.

Statistics Harmonisation and Monetary Union Preparations

On statistics, the Sectoral Council will consider progress in the development and harmonisation of regional statistics, including the adoption of nine (9) additional regional statistical guidelines, bringing the total number of regional statistical guidelines to seventeen (17).

The Sectoral Council will also consider progress in implementing the roadmap for the realisation of the EAMU, including establishment of the four EAMU support institutions and the status of macroeconomic convergence, where performance remains mixed across Partner States, particularly on fiscal deficit, reserve cover and public debt indicators.

Sustainable Financing and Public Financial Management

The Sectoral Council will consider progress in the implementation of the decision of the 25^th Ordinary Summit of EAC Heads of State adopting a new financing formula for the Community based on 50% equal contribution and 50% assessed contribution, to be implemented with effect from 1st July 2026.

The meeting will also consider progress in developing modalities for Partner States to pay annual contributions to the Community in local currencies, phasing out overdraft facilities, developing mechanisms to bridge temporary liquidity gaps and establishing a Sub-Committee on Public Financial Management modernisation and harmonisation under the Committee on Fiscal Affairs.

For more information, please contact:

Corporate Communications and Public Affairs Department
EAC Secretariat
Arusha, Tanzania
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Website: www.eac.int

About the East African Community:

The East African Community (EAC) is a regional intergovernmental organization comprising the Democratic Republic of Congo, the Federal Republic of Somalia, the Republic of Burundi, the Republic of Kenya, the Republic of Rwanda, the Republic of South Sudan, the Republic of Uganda and the United Republic of Tanzania. The EAC aims to expand and deepen economic, political, social, and cultural integration to improve the quality of life of the people of East Africa through increased competitiveness, value-added production, trade, and investment.