The East African Community (EAC) partner states have come up with a new hybrid financing model to boost funding and operations of the EAC secretariat, a Kenyan official said Tuesday.
Ukur Yatani, cabinet secretary for National Treasury of Kenya, said in a statement issued in Nairobi, the Kenyan capital, that the new model would see 65 percent of the EAC budget contributed equally by all the member states and the rest depending on their economic strengths.
“The 35 percent of the budget would be assessed based on the partner states average nominal gross domestic product per capita for the previous five years as reviewed by the World Bank,” said Yatani after a meeting of the East African Community Sectoral Council on Finance and Economic Affairs, a body that he chairs.
The council that brings together finance ministers and central bank governors of East Africa Community partner states, namely Uganda, Tanzania, South Sudan, Kenya, Rwanda and Burundi, said the new model is simple in terms of parameters used on assessed contribution and enhances principles of equity, solidarity, equality and economic size of partner states. Enditem