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EAST AFRICAN COMMUNITY
BUDGET SPEECH
PRESENTATION OF THE BUDGET OF THE EAST AFRICAN
COMMUNITY FOR THE FINANCIAL YEAR 2014/2015 TOTHE EAST AFRICAN LEGISLATIVE ASSEMBLY
By Hon. P y!!"# $%n&"'( C %")*')#on o+ , ' Co-n "! o+ M"n"#,')# o+ , 'E%#, A+)" %n Co -n",y %n&
C% "n', S' )',%)y( M"n"#,)y +o) E%#, A+)" %n Co -n",y A++%")#(Co ') ' %n& To-)"# o+ R'*- !" o+ $'ny%
T -)#&%y 2 , M%y 2014EALA C % ')#( EAC H'%& -%),')#( A)-# %( T ' Un",'& R'*- !" o+
T%n3%n"%
Theme: Consolidating the EAC Common Market and commencingthe implementation of the Monetary Union Protocol
PART I INTRODUCTION
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1. M%&% S*'% ')( I beg to move that this esteemed Legislative
Assembly resolve into a House Committee to debate and approve
the proposals by the Council of Ministers for the Budget of the East
African Community for the inancial !ear "#1$%"#1&.
". 'he Budget estimates for the inancial !ear "#1$%"#1& are being
presented at a time (hen the momentum of the integration process is
increasing. )e e*pect to fully operationali+e the Common Mar,et
-rotocol and reali+e the time bound ob ectives (e set for ourselves.
'he EAC /evelopment 0trategy "#11%1"2"#13%"#145 sets out
clearly our targets (ithin the five2year period.
PART II GLOBAL ECONOMIC PERFORMANCE AND
OUTLOO$
Global Economic Performance
6. M%&% S*'% ')( According to the International Monetary und7s
)orld Economic 8utloo,9 global gro(th pic,ed up in the second
half of "#16 averaging 6.4 percent9 a mar,ed uptic, from the ".4
percent recorded during the previous si* months. 8verall9 the real
(orld :ross /omestic -roduct :/-5 (as estimated to haveincreased by 6.# percent9 compared to 6." percent in "#1".
Sub Saharan Africa
$. M%&% S*'% ')( despite the sluggish performance in the global
economy9 economic conditions in 0ub20aharan Africa remained
generally robust9 underpinned by improved agricultural production
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and investment in natural resources and infrastructure. Inflation (as
estimated to have eased further from ;.# percent in "#1" to 3.6
percent in "#169 (hile the average current account deficit (idened9
o(ing to relatively lu,e(arm prospects for commodity prices and
demand from emerging mar,et economies.
Economic !utlook
&. :lobal economic recovery is e*pected to improve in "#1$9 according
to the IM 7s April "#1$ )orld Economic 8utloo,.
3. M%&% S*'% ')( the sub20aharan Africa
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the Coordination Committee9 and Members of staff of the East
African Community.
=. M%&% S*'% ')( 'he EAC Budget process has9 since the inancial!ear "##=%"#1#9 embraced the good practice of (idely inclusive
participation of the broad spectrum. 'he EALA has been involved
right from the start of the Budget process and (e are sincerely
grateful to this august House for the (onderful guidance it has
rendered to the Community in its budgeting process.
PART IV REVIE6 OF EAC PROGRAMME PERFORMANCE
FOR THE FINANCIAL YEAR 2012/2017
1#. M%&% S*'% ')( in revie(ing the Budget performance for the
inancial !ear "#1"% "#169 e*ecution (as 4$ percent. I am
confident that this good performance (ill continue (ith the
"#16%"#1$ budget (hich is still currently under e*ecution. I (ould
li,e to state that (e have continued the results2based performance
management system (hich has been put in place and supported by a
Monitoring and Evaluation system at the EAC 0ecretariat.
11. 'his August House approved a Budget of 0/ 16696$=9$#" for the
Community (hich (as inclusive of Inter2 niversity Council for
East Africa and t(o 0upplementary budgets for the inancial !ear
"#16%"#1$ (ith focus on the follo(ing priorities?2
(i) 'he establishment of a 0ingle Customs 'erritory>
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(ii) 'he progressive implementation of the Common Mar,et
-rotocol and harmoni+ation of financial la(s and regulations>
(iii)Implementation of the EAC Monetary nion -rotocol>
(iv) 'he development of cross border infrastructure through
implementation of on2going programmes and pro ects in the
respective sub2sectors>
(v) 8perationali+ation of the EAC Industriali+ation 0trategy and
-olicy>(vi) Implementation of the EAC ood 0ecurity and Climate
Change Master -lan>
(vii) Conclusion of negotiations for the establishment of the :rand
ree 'rade Area comprising "; African countries under the
'ripartite EAC2C8ME0A20A/C initiative>
(viii) Implementation of cross cutting interventions on peace and
security> trade negotiations EAC2E 2E-A9 EAC2 05> and
0ocial /evelopment>
(ix) Implementation of the critical activities of La,e ictoria Basin
Commission.
1". In this Budget presentation9 allo( me to report on these activities
under the broad thematic areas for ease of reference9 namely an
update of the integration process and achievements made under
Economic9 Infrastructure9 -roductive and 0ocial 0ectors9 -olitical
pillars of co2operation9 and cooperation in Legal and @udicial
Affairs. I (ill also highlight finance and administration and other
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cross2cutting issues in the EAC integration and development. My
revie( (ill also loo, at developments in the EAC Institutions and
8rgans.
DEEPENING ECONOMIC CO8OPERATION
Customs Union # st Pillar of EAC $ntegration Process
9%: S"n;!' C-#,o # T'))",o)y
16. M%&% S*'% ')( attainment of a 0ingle Customs 'erritory (as one
of the ,ey priorities in the period under revie(. 'he frame(or, for
operationali+ation of the 0ingle Customs 'erritory (as finali+ed and
adopted by the 0ummit in Dovember "#16. 8perationali+ation
commenced on 1 st @anuary "#1$. 'he 0ingle Customs 'erritory
clearance on the Dorthern Corridor have demonstrated remar,able
success (hereby Clearance time from Mombasa to ampala and
igali has reduced from 1; to $ days and "1 to 3 days respectively
and multiple bonds have been replaced by a single bond. 'his has
led to a cost reduction per container from F6964& to F19461 for
ampala bound cargo and from F$9==# to F696;4 for igali bound
cargo.
1$. -ilots of the 0ingle Customs 'erritory systems on the Central
Corridor commenced in May "#1$ (ith fe( products and the rollout
to (ider range of products (ill be underta,en in the course of the
ne( inancial !ear. I (ill soon be tabling in this august House the
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necessary amendments to the EAC Customs Management Act "##$
to facilitate the operations of the 0ingle Customs 'erritory.
9 : E reauthori+ation of A:8A for another 1& years> capacity
building to generate increased private sector engagement> increase
trade and mar,et access> encouragement of .0. investment in
Africa> and9 uphold A:8A preferences for items e*ported from
Africa. 'he nited 0tates and the East African Community have
agreed to launch formal negotiations on 'rade acilitation
Agreement9 and a ne( (or, plan on 0anitary and -hyto 0anitary
0-05 measures and 'echnical Barriers to 'rade. 'he .0. proposed
completing the negotiations on the 'rade acilitation Agreement and
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launching the parallel trac, on 0-0 and 'echnical Barriers to 'rade
and concluding the Investment 'reaty by the time of the first .0.2
Africa 0ummit to be hosted by -resident 8bama in )ashington in
early August9 "#1$.
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1=. M%&% S*'% ') 9 progress has been made on the EAC2E 2E-A
Degotiations. 8n "4 th March "#1$9 both -arties finali+ed
negotiations on the Jules of 8rigin -rotocol9 and the most avoured
Dation 'reatment Clause agreed on provisions for a comprehensive
dialogue on Agriculture and Jural /evelopment -olicy and
transparency on domestic policy measures relating to agricultural
support. 'he remaining outstanding issues (hich have been referred
to the EAC2E Ministers are?
(i) E*port 'a*es>
(ii) /omestic 0upport and E*port 0ubsidies>
(iii) relations (ith the Cotonou Agreement dealing (ith countering
the proliferation of (eapons of mass destruction9 human rights
and corruption>
(iv) :ood :overnance on 'a* Matters> and
(v) Conse uences from Customs nion Agreements concluded
(ith the E . 'he ne*t EAC2E Ministerial Meeting is
e*pected to be held in @une "#1$ in the EAC Jegion.
Common Market % nd Pillar of EAC $ntegration Process
"#. M%&% S*'% ')( during the period under revie(9 pursuant to
fulfilling Article of the EAC Common Mar,et -rotocol9 (hich
re uires the development of a frame(or, for monitoring and
evaluating the implementation of the -rotocol9 the Community
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developed an EAC Common Mar,et 0corecard "#1$ that (as
formally launched in ebruary9 "#1$.
'he EAC Common Mar,et 0corecard?(i) Covered three fundamental areas namely? capital9 services and
goods>
(ii) Created a data base of la(s and regulations relevant to the
reform process and provided a guide on the la(s and
regulations that should be amended to conform to the-rotocol>
(iii) 8rgani+ed its analysis along ,ey sectors of commitment
thereby providing an opportunity for discussions in designing
reform programs to accelerate implementation of the -rotocol>
and
(iv) Made recommendations on the re uired strategic9
organi+ational and legal actions to fast2trac, the full
implementation of the Common Mar,et -rotocol.
'he 0corecard should be able to assist -artner 0tates to identify areas of
slo( or limited progress. /uring this inancial !ear9 the Council
intends to introduce a Bill to the EALA to deal (ith this challenge.
Monetary Union & rd Pillar of EAC $ntegration Process
9%: E%#, A+)" %n Mon',%)y Un"on P)o,o o!
"1. M%&% S*'% ')( the move to(ards deeper economic integration in
the Community has gained ne( impetus (ith the signing of the
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-rotocol on the Establishment of the East African Monetary nion
at the 1&th 8rdinary 0ummit of EAC Heads of 0tates on 6#th
Dovember9 "#16 in ampala9 ganda. 'he EAM -rotocol is a
milestone outlining a ten2year roadmap to(ards a single currency by
the year "#"$. In order to facilitate commencement of its
implementation9 the -artner 0tates are e*pected to conclude the
ratification process by @uly9 "#1$.
9 : Coo)&"n%,"on o+ F"# %! Po!" y
"". M%&% S*'% ')( the roadmap for the reali+ation of the Monetary
nion envisages harmoni+ation and coordination of fiscal policies of
the -artner 0tates9 and that macroeconomic convergence be achieved
and maintained for at least three years prior to the adoption of a
0ingle Currency. 'he Committee on iscal Affairs has identified
fiscal policy areas re uiring harmoni+ation9 (hich have already been
adopted by the 0ectoral Council on inance and Economic Affairs
(hich include? coordination of budget processes> harmoni+ation of
ta* policies and la(s> coordination of public debt management and
fiscal management of natural resources in order to safeguard against
adverse effects on macroeconomic management.
9 : Coo*')%,"on "n S,%,"#," # H%) on"3%,"on %n& D'='!o* 'n,
"6. M%&% S*'% ') 9 in order to respond to the gro(ing demand for
reliable9 timely and comparable regional statistics9 the Community is
focused on development of a Jegional 0tatistical 0ystem and a
Jegional 0tatistical /evelopment -lan has been developed
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providing the strategic vision and themes of the Jegional 0tatistical
0ystem.
"$. In order to provide the right institutional frame(or,9 and pursuant tothe 0ummit /irective9 the assignment of the development of the
policy (ill also include preparation of a /raft Bill for the
establishment of the East African 0tatistics Bureau (hich (ill be
brought before this august House for enactment "
9&: F"n%n "%! S' ,o) D'='!o* 'n, %n& R';"on%!"3%,"on P)o@' ,"&. M%&% S*'% ')( during the "#16%1$ inancial !ear9 the
Community sa( the completion of diagnostic (or, in three areas9
namely The Study on Risk Based Supervision in the EAC Securities
Market; the Assessment of the EAC Pension Industry; and an
assessment of compliance to the International r!ani"ation of
Securities Commission#
9': C%*",%! M%) ',# In+)%#,)- ,-)'
"3. M%&% S*'% ')( the ey priority for the "#1$%1& inancial !ear
(ill be the procurement9 installation and implementation of the
Capital Mar,ets Infrastructure to allo( a seamless movement of
0ecurities and -ayments bet(een the different EAC Capital
Mar,ets9 compatible at the regional level9 in order to enable the
creation of a Jegional inancial Mar,et in the EAC that (ill
increase investment opportunities to both regional and non2 regional
investors.
9+: In='#, 'n, P)o o,"on %n& P)"=%,' S' ,o) D'='!o* 'n,
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"4. M%&% S*'% ')( the -artner 0tates have embar,ed on aggressive
investment promotion initiatives to improve the investment climate
of the region. 0ince "#1"9 the EAC launched annual $oin! Business
Reports %hich indicates that the Community is one of the fastest
reforming regions in terms of business in the (orld. -lans are
under(ay to revie( the EAC Model Investment Code "##39 (hich
aims at addressing the latest development in the Community.
";. 'he Community has partnered (ith the East African Business
Council to mainstream the involvement of the private sector in the
EAC integration agenda. 'he frame(or, has been rolled out (ith
the convening of the 0ecretary :eneral and Chief E*ecutive
8fficers7 orum (hich rotates in the capitals of the Community.
"=. M%&% S*'% ') 9 it is my pleasure to report that the initiative to
develop a regional -ublic2-rivate2-artnership ---5 policy
frame(or, is under(ay in an effort to establish financing options for
regional --- pro ects9 and the role that the Community can play in
addressing infrastructure challenges facing it. Already substantial
funding has been sourced from /evelopment -artners to cater for
setting up an EAC --- Centre of E*cellence to be housed at the
Head uarters of East Africa /evelopment Ban, in ampala9
ganda.
INFRASTRUCTURE DEVELOPMENT UNDERPINNING
PILLARS OF EAC INTEGRATION PROCESS
9%: Ro% %n& R%"!#
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6#. M%&% S*'% ')( the Community completed the detailed designs of
the Arusha G Holili % 'aveta G oi road pro ect in ebruary9 "#16
and both enya and 'an+ania concluded loan negotiations (ith the
African /evelopment Ban, in May9 "#16 for civil (or,s. 'he
construction (or,s on the enya side of the road have commenced
(hile the 'an+anian portion is under procurement targeted for
commencement in August "#1$.
61. 'he designs for Malindi G Mombasa G Lunga Lunga and 'anga G
Bagamoyo road are scheduled to be completed by @une9 "#1$.
-reparations are already under(ay to source for funds for civil
(or,s. /uring the same period9 the Community submitted funding
proposals for feasibility and detailed engineering designs to the
African /evelopment Ban, for t(o roads lin,ing J(anda and
Burundi to the Central Corridor and on(ard to the port of /ar es
0alaam. 'hese are?
i5 Lusahunga G Jusumo and ayon+a G igali road> and
ii5 Dya,ana+i G asulu G Manyovu and Jumonge G Bu umbura
road.
'he Ban, has agreed to fund the t(o roads studies and pro ects
preparations are in progress.
9 : R%"!>%y# S- #' ,o)
6". 'he Community received funds appro*imately 0F 1.4 million5
from the African /evelopment Ban, for the EAC Jail(ays 0ector
Enhancement -ro ect9 (hose main ob ective is to determine the
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feasibility of constructing ne( lines9 the viability of reviving
dormant lines9 harmoni+ation of rail(ay la(s and standards and an
appropriate institutional arrangement for regional rail(ays
development. 'his study (ill assess the recommendations from the
EAC Jail(ays Master -lan on regional rail(ays development and
(ill advise on a medium to long term investment strategy for the
sub2sector9 including the possibility of the establishment of the EAC
Jail(ays Jegulatory Authority.
9 : M%)"," ' S- #' ,o)
66. 'he Community is in the process of finali+ing a Baseline 0tudy on
Maritime 'ransport and -orts 0ectors in the EAC Jegion (hich
covers both inland (ater(ays9 sea ports9 coastal as (ell as
international shipping aspects. 'he African /evelopment Ban, has
agreed to finance the re uisite studies.
9&: EAC Co))"&o)# In","%,"='#
6$. A database on the East African component of the 'ripartite plus
I:A/ Corridor -rogramme for "#16 (as finali+ed. 'he -rogramme
covers preparation of -ro ect documentation for -orts9 Joads and
Jail(ays in the East African Jegion9 (hich (ill be used inmobili+ing resources to(ards the implementation of the relevant
pro ects.
6&. A study on A Re!ional Transport Intermodal Strate!y and Action
Plan in the Countries of the East African Community is under(ay
(ith support from the )orld Ban,. 'his 0trategy is anchored on a
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rail2centric development model aimed at facilitating an integrated9
efficient and cost effective transport system in the Jegion.
8ther ongoing initiatives involve (eighbridges improvements and
rationali+ation9 port capacity enhancement and construction of ne(
ports. 8ne 0top Inspection 0tations and Joad 0ide 0tations along the
Central and Dorthern Corridors respectively and the establishment
and operationali+ation of 8ne20top Boarder -osts at borders (ithin
EAC and (ith other JECs.
63. 'he East African Community 8ne 0top Border -osts Bill9 "#1" and
the East African Community ehicle Load Control Bill "#1"9 (hich
(ere passed by this august House last year9 have been submitted to
the Heads of 0tate for assent . 'he Community has commenced on
the development of regulations to support the implementation of the
t(o la(s. In order to foster collaborative (or,ing relationships for
the regional corridors9 the Community and the Jegional Corridor
Authorities in the region concluded a 0trategic Cooperation
rame(or, in March "#1$ involving the Central Corridor 'ransit
'ransport acilitation Agency> the Dorthern Corridor 'ransit
'ransport Authority and the Lamu -ort 0outh 0udan Ethiopia
Corridor Authority.
9': C"="! A="%,"on %n& A")*o),# S- S' ,o)
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64. /uring the year under revie(9 the programme for the EAC nified
pper light Jegion ollo( on 0tudy IJ5 (as approved and
(hose ob ective is to bring on board the re uirements for the upper
airspace management capacities for Burundi and J(anda and to
address the sustainability of the lo(er airspace in the EAC. 'he
Community (ill continue coordinating the implementation of the
ollo( on 0tudy to meet the e*pected completion date of @anuary
"#1&.
9+: Co -n" %,"on# S- S' ,o)
6;. M%&% S*'% ') 9 the EAC -rotocol on Information and
Communication 'echnology IC'5 Det(or,s has been adopted and
(ill provide the legal frame(or, for the establishment and operation
of cross2border IC' infrastructure and services. In an effort to
develop a legal frame(or, for international mobile roaming (ithinthe Community9 the Council approved the 'erms of Jeference for
developing the frame(or, and -rocurement for a consultancy (ill
commence in @uly "#1$.
6=. -artner 0tates continued to implement the EAC Joadmap for
Analog2to2/igital Broadcast Migration and all the five -artner 0tateshave committed to completing the migration programme by
/ecember "#1$.
9;: M','o)o!o;" %! S- S' ,o)
$#. M%&% S*'% ') 9 during the year under revie(9 harmoni+ation of
meteorological services continued (ith the approval of the East
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African Meteorological /ata -olicy and the development of the
EAC ive !ears Meteorological /evelopment -lan and Investment
0trategy "#16 G "#1;5. 'he Community (ill embar, on
implementation of priority pro ects identified in the 0trategy in the
ne*t inancial !ear.
9 : 7)& H'% o+ S,%,' R',)'%, on In+)%#,)- ,-)' D'='!o* 'n, %n&
F"n%n "n;
$1. As a follo( up to the " nd Infrastructure Jetreat held in Dovember9
"#1"9 the Heads of 0tate decided that the 6 rd Jetreat should be held
in Dovember9 "#1$ to address matters of financing and
implementation of infrastructure pro ects in the region.
COOPERATION IN THE PRODUCTIVE SECTORS
9%: En');y S' ,o)$". M%&% S*'% ')( steady progress has been made to(ards the
establishment of East Africa Centre for Jene(able Energy and
Efficiency (hich (ill provide a platform for EAC7s involvement in
the 0ustainable Energy for All Initiative of the nited Dations.
$6. In preparation for anticipated regional interconnectivity of the po(ernet(or,s in the region9 a set of ,ey performance and reliability
parameters have been identified that should be regularly collected
and monitored. 'his (ill also enable the region to provide peer
revie( among -artner 0tates as (ell as benchmar, against
international best practices. A model for collecting this information
has been developed and is being implemented by all the -artner
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0tates through the Jegulatory Authorities and the EAC 0ecretariat.
'he Inter2:overnmental and Inter2 tility Mo s on East African
Community -o(er -ool have been concluded and approved.
Interconnection pro ects currently under implementation include?2
i5 $## ,ilo volt interconnection bet(een enya and ganda>
ii5 ""# ,ilo volt interconnection bet(een ganda and J(anda>
and
iii5 ""# ,ilo volt interconnection bet(een J(anda and Burundi.
'he enya2 ganda and ganda2J(anda interconnectors are
e*pected to be ready for commissioning in the first uarter of "#1&
(hile the J(anda2Burundi interconnector is e*pected to be ready for
commissioning in mid2"#13. easibility studies and tenderdocuments for a $## ,ilo volt interconnector bet(een enya and
'an+ania have been completed and funding for implementation is
under discussion (ith the African /evelopment Ban,.
$$. M%&% S*'% ')( the implementation of the si*teen mega(att
i,agati2Murongo hydropo(er pro ect on the border of 'an+aniaand ganda has continued to face delays despite interest from the
private sector to implement the pro ect. Continued delay to
implement this pro ect (ill result in fatigue on the private sector
developer (ho has been (aiting for over three years and send
unfavorable signals on our commitment to cross2border investment
in the region. I call upon the nited Jepublic of 'an+ania and the
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Jepublic of ganda to e*pedite the signing of the Bilateral
Agreement on this pro ect to pave (ay for its implementation.
$&. /uring the inancial !ear "#16%1$9 a roadmap (as developed forthe harmoni+ation of petroleum policies and procedures in order to
further enhance the attractiveness of the region as an investment
destination for oil and gas prospecting. 'his (or, is e*pected to
continue into the ne( financial year9 "#1$%1&. 'he nited 0tates
Agency for International /evelopment 0AI/5 has provided some
resources for "#1$%1& to enable the Jegion tap into the -o(er Africa
Initiative by preparing po(er pro ects for private sector participation
under the initiative.
$3. 8ne of the highlights for "#1$%1& (ill be the 4 th East African
-etroleum Conference and E*hibition9 (hich is scheduled to ta,e
place from $ th to 3 th March "#1& in igali. 'he Conference (ill
highlight investment opportunities in the petroleum sector.
9 : In&-#,)"%!"3%,"on %n& SME D'='!o* 'n,
$4. M%&% S*'% ')( during the period under revie(9 the Community
undertoo, a holistic mapping of regional value chains for agri2
business9 agro2processing and rene(able energy (ith a vie( to
unveiling investment opportunities in the sub2sectors such as sugar9
leather9 cotton9 te*tiles9 and vegetable oils.
9 : P% %;"n; %n& P)o '##"n; T' no!o;"'#
$;. M%&% S*'% ')( the pac,aging industry plays a uni ue role in
adding value to the manufacturing and e*port sectors9 and is
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therefore of strategic importance in influencing the development of
EAC economies. It is estimated that -ost2harvest losses of fruit9
grains and vegetables in Africa range from "# to ;# of total
production. 'he introduction of proper pac,aging can greatly help
reduce those losses and facilitate the management of the supply
chains of agricultural commodities thereby contributing to more
food availability9 reduced food prices and more food security. In this
connection9 EAC in collaboration (ith /evelopment -artners has
formulated a comprehensive programme for the development of
pac,aging industry in the region9 and has finali+ed plans to organi+e
the first ever Jegional -ac,aging E*hibition under the theme EAST
A&RIPAC' ()*+, The Processin!, Packa!in! and Convertin!
Technolo!ies for East Africa Re!ion from =th to 1" th 0eptember "#1$
in Dairobi9 enya #
9&: E and inade uate
enabling investment frame(or, for Mineral alue Addition
continues to hamper prospects for harnessing opportunities in theE*tractive 0ectors. 'o address these challenges9 the region has
finali+ed the revie( of legal and regulatory frame(or,s for mineral
value addition and prepared a roadmap to support the development
of e*tractive and mineral value addition in the region on the -riority
Minerals including Iron ore9 Coal9 Dic,el2Copper2Cobalt9 and
construction materials. 'hese are the minerals (hich present the
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immediate potential for value addition in the Community and efforts
should be directed at providing necessary infrastructural enablers
that are critical for their development.
9': En=")on 'n, %n& N%,-)%! R'#o-) '#
. M%&% S*'% ')( the Jepublics of ganda and enya have already
ratified the -rotocol on Environment and Datural Jesources
Management (hile 'he nited Jepublic of 'an+ania is in the
process of e*pediting her ratification to pave (ay for its entry into
force. In the meantime ( preparatory activities to(ards its
implementation through an 8perational 0trategy and Action -lan are
under(ay.
&1. 'he process of institutionali+ing EAC7s oint participation in
International Conventions and 'reaties on Environment and Datural
Jesources Management is ongoing to enhance the implementation of
several Multilateral Environmental Agreements that the -artner
0tates have ratified. 'o implement the outcome of the Jio 0ummit
on 0ustainable /evelopment? The &uture -e -ant 9 an EAC -ost2
JioK"# -lan of Action (as developed and approved by Council.
'echnical preparations including development of regional position papers in readiness for international policy discourse on Biological
/iversity9 Climate Change and /isaster Jis, Jeduction under the
D Convention on Biological /iversity9 the D rame(or,
Convention on Climate Change and the Hyogo rame(or, for
Action on /isaster Jis, Jeduction are ongoing.
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&". 'he East Africa )ater ision "#"& that reflects ho( best to use9
protect9 manage and develop (ater resources has been developed to
provide a clear frame(or, for sustainable management of regional
(ater resources. Jesources have been mobili+ed to underta,e the
development of an EAC )ater -olicy and Integrated )ater
Jesources /evelopment 0trategy.
&6. 'he process of promoting conservation and management of shared
trans2boundary Datural Jesources%Ecosystems for enhanced socio2
economic development9 improved production and income> and
strengthening regional integration through cross border and inter2
regional business has been initiated through the Ecosystems -rofile
Assessment E-A5 that has identified ey Biodiversity Areas
BAs5 for conservation 'o(ards the implementation of the
outcome of the irst EAC La,e 'anganyi,a Basin /evelopment
Conference that (as held in Bu umbura in Dovember9 "#119 an
Action -lan has been developed and 'he La,e 'anganyi,a )ater9
0anitation and Environment -rogramme L')A'0AD5 (as
initiated. -lans for its endorsement by Ministers for )ater and
Environment in the 'ripartite EAC2C8ME0A20A/C region (ere
initiated in @uly "#16 and are under(ay. 'he -rogramme has beenearmar,ed for funding under the 11 th European /evelopment und
E/ 2115 as part of the Jegional Indicative -rogramme JI-5.
&$. M%&% S*'% ')( the process of harmoni+ation of policies on
Datural Jesources management continues. Harmoni+ation of mining
and biosafety policies are under(ay including process for facilitating
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an EAC regional policy frame(or, on biosafety> ,ey regional
priorities on Biosafety have been identified and mechanisms to
enhance regional information sharing and net(or,ing including
establishment of regional Biosafety Clearance House and Advanced
Informed Agreement procedures to facilitate decision ma,ing9
promote compliance9 and capacity building have also been
identified.
&&. 'o operationali+e the EAC Climate Change -olicy9 several policy
instruments have been developed and approved. 'hese include? the
8perational Modalities for the EAC Climate Change und9 0trategy
and Master -lan. '(o medium term pro ects are currently under
implementation9 namely> Climate Change Adaptation and Mitigation
-rogramme in Eastern and 0outhern Africa C8ME0A2EAC2
0A/C5 Jegion> and -lanning for Jesilience in East Africa through
-olicy9 Adaptation and Economic /evelopment -JE-AJE/5.
-riority activities for implementation during ! "#1$%1& under the
t(o pro ects include? initiation of ne( and up2scaling of Climate
0mart Agriculture pilot pro ects> establishing an EAC Carbon Credit
E*change -latform (ith an aim of enhancing the region7s active participation in the global carbon trading through the Clean
/evelopment Mechanism. 8thers include? EAC7s accreditation and
enlisting as a Jegional Implementing Entity that can access
international climate change financing.
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9;: A;)" -!,-)' %n& Foo& S' -)",y
&;. M%&% S*'% ')( pursuant to the implementation of EAC ood
0ecurity Action -lan9 priority programmes9 are being implemented
at different stages. 0ome of the ma or interventions underta,en
include the development of the EAC ood and Dutrition 0ecurity
-olicy. A regional ood Balance 0heet rame(or, has been
developed.
/evelopment of strategies and measures for control of Aflato*ins
contamination in agricultural production is high on our agenda. 'he
EAC Jegional -ro ect on Aflato*in (as launched early this year
(ith the aim of preventing and controlling adverse impacts of
Aflato*in along the food and feed value chains in the EAC region.
'he development of a draft EAC Comprehensive Africa Agriculture/evelopment -rogramme CAA/-5 has been finali+ed. 'he EAC
see,s to set the parameters for long2term policy priorities9
investment commitments and crucial partnerships to scale up long
term development assistance to the agricultural sector.
)e have also made remar,able progress in deliberations aimed atthe harmoni+ation of fertili+er mar,et policy9 regulatory and
institutional instruments in the EAC region.
&=. M%&% S*'% ')( in implementing the EAC 0anitary and -hyto2
sanitary -rotocol9 0anitary Measures for ish and ishery -roducts
(ere launched this year. EAC is the first Jegional Economic
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Community to launch such measures on the African continent. 'he
aim of the 0-0 measures is to protect health9 enable EAC fish and
fisheries products access the international mar,ets and conse uently
promote the fisheries 0ector in the EAC. )e are also developing an
a uaculture strategy and implementation plan to strengthen
a uaculture value chain in the region. In the area of pest and disease
control9 regional programmes for control of mai+e lethal necrosis
disease and the control of trans2boundary animal diseases in the
region have been developed. A draft EAC Livestoc, -olicy has also
been developed as (ell as a draft -lan of Action for enhancing
resilience of pastoralists in Arid and 0emi2Arid Lands in the
Community. 'he Action -lan (ill contribute to(ards enhancing the
livelihoods of pastoralists and build their capacity to cope (ith
climate change and variability. 'he draft Action -lan (ill
complement the EAC ood 0ecurity Action -lan (hich provides forthe development of an instrument%plan to address challenges
e*perienced by pastoralists in the drylands. In the ne*t inancial
!ear9 efforts (ill be made to consolidate the above on2going
activities.
9 : To-)"# %n& 6"!&!"+' D'='!o* 'n,
3#. M%&% S*'% ') 9 the Community continues to promote EAC as a
0ingle 'ourist /estination abroad and regionally. 'his has been
achieved by participating at the )orld 'ravel Mar,et in London in
Dovember9 "#16 and the International 'ourism air in Berlin in
March "#1$. A focused media campaign (as implemented (hereby9
Ministers of 'ourism gave oint statements promoting the Jegion
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and assuring the (orld on the measures being ta,en to ensure the
safety and security of the Community.
31. At the regional level9 (e continue to encourage citi+ens of the-artner 0tates to en oy the various attractions available. A targeted
radio and television campaign (as launched sensiti+ing them that all
East Africans are to be treated as locals (hen visiting public tourist
attraction sites in the five countries. -referential rates are being
accorded to East Africans in the Jegion. 'he second edition of the
Travel Round and A.out East Africa Maga+ine (as issued and it
contains useful information to visitors planning multi2destination
holidays.
3". M%&% S*'% ')( in "#119 -artner 0tates agreed on the principle of
variable geometry to begin using the East African 'ourist isa. 'he
Jepublics of enya9 J(anda and ganda launched the initiative in
ebruary this year. 'he Jepublic of Burundi and the nited
Jepublic of 'an+ania are e*pected to come on board as soon as they
are ready.
36. /ue to the increase in poaching9 -artner 0tates have reiterated their
commitment to re2enforce measures to protect our )ildlife. A oint
Jegional 0trategy to stop poaching and the illegal traffic,ing of
(ildlife and (ildlife products (ill be launched in the ne*t inancial
!ear that focuses on enforcing tougher penalties9 strengthening oint
collaboration on la( enforcement and capacity building of local
Communities to (or, ointly (ith la( enforcement to protect
(ildlife resources.
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3$. In the ne*t inancial !ear9 the 'ourism and )ildlife Management
sector intends to continue to implement its mar,eting strategy by
using international tourism fairs to inform the (orld of ongoing
achievements and progress in the sector management.
CO8OPERATION IN THE SOCIAL SECTORS
9%: H'%!, S' ,o)
3&. M%&% S*'% ')( under the Jeproductive Maternal De(2born Child
and Adolescent Health nit9 four pro ects (ere implemented namely
the 8pen Health Initiative9 the EAC2 D -A Collaborative 0e*ual
Jeproductive Health and Jights activities9 the EAC regional
immuni+ation programme in collaboration (ith the :A I Alliance
supported by f) and 0AI/ and the European Commission
funded Invest in Adolescents pro ect.
33. 'he ,ey achievements for the inancial year "#16%"#1$ (ere?2
i5 0upported the nited Jepublic of 'an+ania to trac, both on
and off budget spending for reproductive maternal ne(2born
and child health> and
ii5 acilitated the &th and 3 th EAC Jegional Inter2parliamentary
orum on Health -opulation and /evelopment
'he ,ey priorities for the inancial !ear "#1$%"#1&
i5 8perationali+e the EAC Jegional und to accelerate progress
in (omen7s and children7s health>
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!ear "#1$%"#1& is to underta,e activities to support the introduction
of ne( vaccines. A regional Centre of E*cellence on accine and
Health Logistics (ill be established.
3=. nder the HI and AI/0 programme9 the ,ey achievement for the
inancial !ear "#16%"#1$ (as the development of the 1 st EAC HI
Epidemic Jeport "#169 and the conclusion of the report on the
comprehensive analysis of the EAC -artner 0tates HI and AI/0
-olicies9 la(s9 strategies and the development of an EAC regional
HI and AI/0 Legal and policy reform aimed at improving the
legal and policy environment.
'he ,ey priorities for the inancial !ear "#1$%"#1& include?
i5 Jevie( development of the second EAC Multisectoral
strategic plan for HI and AI/09 'B and 0'Is9 "#1& G "#"#>
ii5 -roposal for financial support to the :lobal und to ight
AI/09 'uberculosis and Malaria>
iii5 /evelopment of the policy Minimum pac,age of care and a
strategy for scaling up Health and HI and AI/0
programming along transport corridors in East Africa> and
iv5 acilitation of EAC -artner 0tates to implement the EAC
regional HI and AI/0 Legal and policy reform aimed at
improving the legal and policy environment for HI
programming.
9 : E&- %,"on( S "'n ' %n& T' no!o;y
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4#. M%&% S*'% ')( (ithin the period under revie(9 strategies9 and
structures leading to the harmoni+ation of the EAC Education
system and training curricula (ere developed. 0tructures for
harmoni+ing the EAC pre2primary9 primary and secondary education
(ere developed. Both -rimary 'eacher and 0econdary 'eacher
Education and 'raining structures (ere developed. EAC eLearning
in Education 0trategy "#162"#1; (as developed.
41. 'o operationali+e the East African 0cience and 'echnology
Commission EA0'EC859 negotiations of the Head uarters
Agreement bet(een the Community and the Jepublic of J(anda for
hosting the Commission (ere concluded in 8ctober "#16 and the
Head uarters Agreement (as signed in April "#1$.
4". 'he ,ey priorities for "#1$2"#1& (ill be the development of the
teaching curricula according to the developed structures as guided by
the developed strategies. Activities as spelt out in the EAC
eLearning 0trategy (ill be conducted. 'echnical and ocational
Education and 'raining Harmoni+ation 0trategy (ill be given
priority. 'he East African 0cience and 'echnology Commission (ill
commence operations in @uly "#1$.
9 : C-!,-)' %n& S*o),#
46. M%&% S*'% ')( negotiations of the Head uarters agreement
bet(een the Community and the nited Jepublic of 'an+ania for
hosting the EA is(ahili Commission (ere concluded in /ecember
"#16 in an+ibar. Budget estimates for initial operationali+ation ofthe is(ahili Commission has been included in the EAC budget
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proposals for inancial !ear "#1$%1&. 'he /raft Bill for the
Establishment of the EA is(ahili Commission has been prepared
and (ill be presented to the 1" th 0ectoral Council on Education
0cience and 'echnology Culture and 0ports and (ill be tabled to
EALA for consideration.
4$. M%&% S*'% ')( a regional Mapping 0tudy of the Creative and
Culture Industries is ongoing. /uring the reporting period9 national
level mapping (as conducted in the Jepublic of enya and the
nited Jepublic of 'an+ania aimed at collecting socio2economic
data on the different segments of cultural and creative industries. It
is envisaged that availability of information and statistics on regional
creative economy (ill boost public and private sector investment in
the creative arts and culture sector.
4&. 'he Community continues to promote regional socio2cultural
integration through arts and culture as drivers of EAC integration
through the East African Arts and Culture estivals> bringing
together East African cultural practitioners and the public to
celebrate the rich and diverse cultural heritage of the region. 'he
estival is also aimed at fostering the economic development of the
EAC through creating a mar,et for cultural goods and services9 and
promote arts and culture as a tool of communication in branding the
EAC. -lans are under(ay to underta,e the " nd edition of the EAC
Arts and Culture estival during inancial !ear "#1$%"#1& in the
Jepublic of enya.
9;: I ";)%,"on %n& L% o-)/E *!oy 'n, #- #' ,o)#
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43. M%&% S*'% ') 9 during the period under revie(9 the Immigration
sub2sector focused on the internationali+ation of the De( :eneration
East African e2-assport. A roadmap has already been adopted and
computer generated 0ample designs of the /iplomatic9 0ervice and
8rdinary East African -assports has been developed. 'he "; th
Council of Ministers in Dovember "#16 directed the
internationali+ation of the De( :eneration East African e2passports
to ta,e effect by Dovember "#1&. 'o reali+e this timeframe9 I am
happy to report that -artner 0tates have commenced implementing
the roadmap by incorporating the re uired budget proposals in the
"#1$%"#1& ! for the procurement of the re uired infrastructure and
the -assport boo,lets. 'he budget support for this subsector during
the ! "#1$%"#1& (ill therefore focus on the implementation of the
roadmap to facilitate the launch of the De( e2passport by Dovember
"#1&.
44. M%&% S*'% ') 9 the immigration subsector has prioriti+ed the need
to enhance the capacity of the Immigration /irectorates and
/epartments to develop integrated e2immigration management
systems9 create a fast9 convenient and enhanced e2immigration
services by adopting advanced 'echnology and improving processesand to put in place a secure e2immigration net(or,9 through the
adoption of biometric technology at all borders to reinforce the
national security systems. 'he "#1$%"#1& budget (ill therefore
support the finali+ation of the draft Jegional 0trategic rame(or,
and Action -lan for e2Immigration and support best practices spear
headed by the Chiefs of Immigration in the region and beyond.
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4;. M%&% S*'% ') 9 the Labour Employment subsector remained
underfunded during the ! "#16%"#1$ and therefore activities
implemented focused on monitoring the status of -artner 0tates
completion of the national Manpo(er 0urveys. I am happy to report
that the Jepublics of enya and J(anda have completed their
Manpo(er 0urveys9 (hile the Jepublic of Burundi is on the final
stages of completing the e*ercise. 'he other t(o -artner 0tates are
also at different stages of underta,ing the 0urvey.
/uring the ! "#1$%"#1&9 the subsector has prioriti+ed the
development of a oint programme to encourage the e*change of
young (or,ers amongst the -artner 0tates as provided for in the
EAC Common Mar,et -rotocol.
9 : G'n&')( Co -n",y D'='!o* 'n, %n& C"="! So "',y
Mo "!"#%,"on
4=. M%&% S*'% ') 9 the period under revie( (itnessed the adoption of
the follo(ing policy documents to guide the mainstreaming of
:ender9 Community /evelopment and civil 0ociety mobili+ation
i5 EAC 0ocial /evelopment -olicy rame(or,9 "#16>
ii5 -articipatory :ender Audit Jeport for EAC 8rgans and
Institutions9 "#16>
iii5 EAC rame(or, for :ender and 0ocial /evelopment
8utcome Indicators for EAC /evelopment 0trategy "#112
"#135>
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iv5 :uidelines and Chec,lists for :ender Mainstreaming in EAC
8rgans and Institutions9 "#16>
v5 :ender Mainstreaming 0trategy for EAC 8rgans and
Institutions9 "#16>
vi5 :ender Mainstreaming Action -lan for -artnership und>
vii5 EAC !outh -olicy9 "#16.
'he budget proposals for the period "#1$%"#1& are focused to(ards the
implementation of the mentioned policy documents. 'he other pro ects prioriti+ed for implementation during the inancial !ear "#1$%"#1&
include?
i5 /evelopment of the EAC Child -olicy in partnership (ith the
Inter2Agency )or,ing :roup on Children led by 0ave the
Children 0(eden>
ii5 Implementation of D Jesolution 16"& on integrating gender
into peace and security programs in collaboration (ith -eace
and 0ecurity /epartment9 and
iii5 'he EAC -rogramme on Empo(ering Border Communities
through Moderni+ation of Locally 0hared Mar,ets.
'he sector (ill continue to mobili+e the Civil 0ociety and other
interest groups in order to build a people centered EAC integration
process.
LAYING THE FOUNDATION FOR POLITICAL FEDERATION
4 , PILLAR OF EAC INTEGRATION PROCESS
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cooperation in the 'reaty and (hether the -rotocol is in
contravention of the Dational Constitutions.
;". M%&% S*'% ') 9 accountability9 ethics9 and integrity issues are atthe core of promoting good governance. 'he -lan of Action for
-reventing and Combating Corruption (as considered and adopted
for implementation by the Council. In the coming year9 the
Community (ill embar, on enhancing capacities and conducting
oint programmes among Anti2Corruption Agencies.
In the meantime9 the adoption of the -lan of Action on -romoting
and -rotecting Human Jights is due for consideration by the Council
at its ne*t meeting. 'he EAC Bill of Jights passed by this Assembly
in March "#1" is a(aiting assent by the Heads of 0tate. 8nce
adopted9 it (ill form the policy basis for implementation of various
oint programmes among the Dational Human Jights Commissions.
;6. M%&% S*'% ') 9 strengthening democratic governance through
deployment of Election 8bservation Missions to electoral processes
in the -artner 0tates continues. 'he EAC -rinciples on Election
8bservation and Evaluation9 endorsed in Dovember "#1" ushered in
a structured (ay of observing elections. 'he EAC deployed an
Election 8bserver Mission to the -arliamentary Elections in the
Jepublic of J(anda in 0eptember "#16. 'he EAC plans to deploy
Election 8bserver Missions to the :eneral Elections in the Jepublic
of Burundi in the $ th uarter of "#1&. 'he e*ercise serves to promote
democratic governance leading to a politically stable and peaceful
environment.
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;$. M%&% S*'% ') 9 mobilisation9 sensitisation and outreach targeting
sta,eholders in their diversity to generate greater political (ill has
been at the core of the (or, of the Community. Mobilisation of the
youth through annual debate and appointment of honorary EAC
!outh Ambassadors has gained momentum. 'he 6 rd EAC Annual
debate for niversity students is slated for 0eptember "#1$. 'he
initiative see,s to create a critical mass of students7 ambassadors to
advocate for EAC integration among their peers. -lans are under(ay
to hold the & th EAC Conference on :ood :overnance and the EAC
/ialogue on -olitical Integration.
9 : Fo)'";n Po!" y Co8o)&"n%,"on
;&. M%&% S*'% ') 9 the Community continues to strengthen
engagement (ith other similar Jegional Economic Communitiesand other regional organi+ations. 'his engagement serves to
mobili+e our partners7 support for the EAC integration. It also
ensures that our programs are in sync (ith the continental
integration agenda. 0imilarly9 our programmatic%thematic
cooperation and collaboration (ith the nited Dations family and
other international organisations continues to strengthen.
;3. M%&% S*'% ') 9 the -artner 0tates under Article 1"6 of the 'reaty
commit to define and implement Common oreign and 0ecurity
-olicies. 'he Community concluded a -rotocol on oreign -olicy
Coordination in "#1#. 'he ratification process is yet to be
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;=. M%&% S*'% ')( the -eace and 0ecurity sector has been largely
reliant on donor support for the implementation of its activities. 'his
has not augured (ell for o(nership. As from "#1&%13 -artner 0tates
(ill be assuming responsibility of the sector on incremental basis as
directed by the Council #
=#. /uring the period under revie(9 the foundation (or, on the
establishment of a Jegional orensic referral Centre (as concluded
(hile nine other Centres (ere identified in the region to provide
training on various policing disciplines. It is envisaged that these
interventions9 (ill enhance harmoni+ation of policing practice (ithin
the region and serve to promote professionalism and observance of
rule of la( in la( enforcement. Implementation of a Jegional
Maritime 0ecurity 0trategy intended to ensure safety and security of
the sea lanes that serve the region commenced and (ider
interventions (ill be underta,en in the coming fiscal year.
=1. M%&% S*'% ') 9 (hile the role of (omen in -eace and 0ecurity
cannot be overemphasi+ed9 this has not previously reflected as a
stand2alone intervention. )ithin the confines of the D 0ecurity
Council Jesolution 16"&9 a frame(or, (ill be developed to ensure
greater participation of (omen in -eace and 0ecurity decision
ma,ing (ithin the region.
=". 8ther -eace and 0ecurity interventions envisaged are coordination
of the implementation of measures against money laundering and
financing of terrorism as (ell as launch of the use of the Eastern
Africa -olice Chiefs Cooperation 8rganisation Motor ehicle
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Clearance Certificates both of (hich are critical to protecting our
integration from unintended conse uences.
9&: D'+'n ' S' ,o)
=6. M%&% S*'% ')( I (ish to report that this sector has been one of
the most successful and e*emplary programmes in the EAC
integration process. Cooperation and confidence among EAC
-artner 0tates9 Armed orces have been built to acceptable levels
through the conduct of oint military e*ercises9 e*change of
information9 conduct of Military :ames and sharing /efence
'echnical facilities. Inter2coperability among the Armed forces has
also been enhanced through the formulation of 0tanding 8perating
-rocedures on -eace 0upport 8perations9 Counter 'errorism9
Counter -iracy and /isaster Management.
=$. /uring the period under revie(9 the /efence 0ector addressed issues
of terrorism in the EAC region as a priority9 re2assessed the national
and regional Counter 'errorism capacities developed and adopted an
EAC Counter 'errorism 0trategy in April "#1$. 'he sector is no( in
the process of developing an action plan to facilitate the
implementation of the strategy. 'o date9 only the Jepublics ofganda and J(anda have ratified the -rotocol on cooperation in
/efence and duly deposited the instruments of ratification to the
0ecretary :eneral. I urge those -artner 0tates (ho have not ratified
the protocol to do so as soon as possible.
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CO8OPERATION IN LEGAL AND UDICIAL AFFAIRS
=&. M%&% S*'% ')( during the inancial !ear "#16%1$9 legal and
udicial support has seen the Community underta,e the follo(ing?
i5 the enactment9 of four important pieces of legislation namely>
'he East African Community Holidays Act "#16> 'he East
African Community Appropriation Act "#16> 'he East
African Community ehicle Load Control Act "#16> and 'he
East African Community 0upplementary Appropriation Act
"#16>
ii5 the drafting of the Council of Ministers7 Bills namely> 'he
East African 0cience and 'echnology Commission Bill "#16>'he East African Community Anti2Counterfeit Bill "#16> and
'he East African Community Assets and -remises -rotection
Bill "#169 have been approved by the Council and a(ait legal
input by the 0ectoral Council on Legal and @udicial Affairs.
'he Council (ill soon introduce the East African Community
'rade Degotiations Jepeal5 Bill "#16 in this august House forconsideration> and
iii5 the drafting of 'he East African Community Integration
Education5 Bill "#16> 'he East African Community Cross
Border Legal -ractice Bill "#16> 'he East African Community
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Co2operative 0ocieties Bill "#16> and East African
Community Jis, /isaster Jeduction Management Bill "#169
(hich (ere initiated by some Hon. Members of this august
House pursuant to Article &= 15 of the 'reaty> the latter Bill
has since been ta,en over by the Council for re2introduction as
a Council Bill>
=3. M%&% S*'% ') 9 besides Bills9 the Council has also spearheaded
action in other aspects of legal and udicial co2operation. -rominent
achievements in this regard include? G
i5 'he completion by the Council9 and signature by the Heads of
0tate at the 1& th 0ummit held on 6#th Dovember "#16 9 of 'he
-rotocol on the Establishment of the East African Monetary
nion> this development mar,ed a ma or stride of integration
as agreed by the -artner 0tates under the 'reaty>
ii5 'he revision of the draft -rotocol to 8perationalise E*tended
@urisdiction of the East African Court of @ustice to include>
urisdiction on trade and investment disputes9 and disputes
arising out of the implementation of the -rotocol on the East
African Monetary nion. Appro*imation of Municipal La(sin the East African Community conte*t (hereby priority (as
accorded to those la(s that have a bearing on the
implementation of the East African Common Mar,et> the
preparation of a model contract la( and a revie( of
intellectual property la(s9 both of (hich impact on the free
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movement of goods9 services and capital9 is at an advanced
stage> and
iii5 Jegional @udicial 'raining for @udicial 8fficers at different
levels in the @udiciaries to harmoni+ation such aspects in
administration of la( and ustice as udgment (riting9
teaching techni ues and ustifiability of economic9 social and
cultural rights has been done.
=4. M%&% S*'% ') 9 'here has been increased litigation in (hich the
Council or the 0ecretary :eneral is a nominal defendant in litigation
involving the Community. I am happy to inform this august House
that the Council has benefitted from a number of decisions (hich are
guiding on the interpretation and application of the 'reaty.
=;. M%&% S*'% ') 9 during the inancial !ear "#1$%"#1& the Council
intends to vigorously pursue pro ects and programmes stipulated
under East African Community /evelopment 0trategy "#11%1"2
"#13%14 and to ensure that effective legal practices are in place. 'he
Council (ill pursue the follo(ing matters for purposes of both
supporting this August Houses7s legislative programme and staying
the momentum of legal support in diverse integration endeavours?2
(i) 'he finali+ation of -artner 0tates7 long outstanding
consultations and technical input on such important Bills as
'he East African Community -rivately2 unded Infrastructure
Bill> 'he East African Community /evelopment und Bill>
'he East African Community Industrialisation Bill> 'he East
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African is(ahili Commission Bill> 'he East African Health
Jesearch Commission Bill> 'he La,e ictoria Basin
Commission Bill> and 'he East African Community
Elimination of Don2'ariff Barriers Bill9 "#1$9 all of (hich
have been agreed upon in principle>
(ii) 'he initiation of Bills to establish East African Community
Institutions charged (ith supporting the East African
Monetary nion i.e. an institution responsible for financial
services> an institution responsible for surveillance9compliance and enforcement> an institution responsible for
statistics>
(iii) Any other institutions necessary for the proper functioning of
the East African Monetary nion>
(iv) 'he initiation of Bills to support the development and runningof the 0ingle Customs 'erritory and other identified aspects
of development especially in infrastructure9 productive sectors
including energy resources9 social sectors and institutional
development once policy decisions have been ta,en on the
Institutional Jevie( and 0ustainable 8ptions for unding of
the East African Community>
(v) 'he pursuit of complete ratification of such instruments as 'he
EAC -rotocol on Co2operation in /efence9 'he EAC -rotocol
on oreign -olicy Co2ordination9 'he EAC -rotocol on
0anitary and -hyto20anitary Measures9 'he EAC -rotocol on
Information 'echnology9 'he EAC -rotocol on Environment
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and Datural Jesource -rotection in order to bring such
-rotocols into force as intended.
==. M%&% S*'% ') 9 the Council underta,es to continue e*aminingsome dra(bac,s in its drive to promote9 monitor and ,eep under
constant revie( the implementation of the Community7s
programmes. 'hese include delayed implementation of decisions by
the -artner 0tates and some 8rgans and Institutions9 the lengthy and
bureaucratic manner of initiating and studying Council of Ministers7
Bills9 delayed ratification of -rotocols and other Anne*tures to the
'reaty9 and delayed finali+ation of the -rotocol to 8perationali+e
E*tended @urisdiction of the East African Court of @ustice.
FINANCE AND ADMINISTRATION
9%: EAC V"&'o Con+')'n "n; P)o@' ,
1##. M%&% S*'% ')( implementation of the ideo Conferencing
system has commenced and is e*pected to be completed by the
inancial !ear "#1$%1&.
'he ideo Conference system (ill be a ma or milestone in ushering
the EAC into the digital era. 'he facility (ill facilitate EAC
meetings> be an entry point to e2governance and for e2learning. 'he
ideo Conference system (ill also permit regular consultative
meetings bet(een any t(o or more -artner 0tates. -olicy9 guidelines
and procedures (ill be developed specifically focusing on the
effective use of the facility to enhance efficiency and effectiveness ofall 8rgans of the Community. -artner 0tates are giving their full
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support in the implementation of this pro ect. )e e*pect considerable
savings and efficiency in using the system in terms of physical
meetings.
ACTIVITIES OF THE INSTITUTIONS AND ORGANS OF THE
EAC
1#1. M%&% S*'% ')( I (ould li,e no( to turn to the developments that
have ta,en place in the EAC Institutions and 8rgans.
East African 'egislati(e Assembly
1#". M%&% S*'% ') 9 the budget for the inancial !ear "#1$%"#1& has
an increment of 11.$& over this year7s budget. 'he increment is
occasioned mainly by the follo(ing ne( items in the budget?
(i) Ad ustment in emoluments for Members9 a total increment of
0/ 3&19 "$# has been effected. 'he ne( terms become
effective from 1 st @uly "#1$>
(ii) 'he oversight activities for the EALA Committees have been
previously funded by the -artnership und. EALA and the
/evelopment -artners have consistently and rightly so9 arguedthat oversight is a core mandate of the Assembly and as such
should be budgeted for under the main stream budget of the
Community funded by the -artner 0tates. I am pleased to
inform this august House that the Council of Ministers has
made a provision of 0/$=#9 ### from its -artner 0tates
budget to cater for oversight activities>
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(iii) 'he lo( level of sensitisation of the -anainchi on the
integration agenda has been of concern to this august House.
Although the EAC 0ecretariat and -artner 0tates Ministries
responsible for EAC Affairs continue to ma,e efforts at
sensiti+ation of citi+ens9 it has been noted that there is need to
e*pand this role to all the main Institutions and 8rgans of the
EAC9 starting (ith this august House. 'he Council of
Ministers has made an initial provision of 0/ "&&9 ### to the
Assembly to ,ic, start its sensitisation programme. 'heCouncil9 and the -artner 0tates are committed to (or,ing (ith
EALA to enhance the sensitisation of East African citi+ens
about the EAC integration agenda> and
(iv) Jelocation of the Audit Commission Budget from the EAC
0ecretariat to EALA amounting to 0/ 6&49 ###.
East African Court of )ustice
1#6. M%&% S*'% ')( during the period under revie(9 the Court
embar,ed on structured uarterly sessions (here the Court session is
normally organi+ed to last one month in both /ivisions. 'his is as a
result of registering a significant increase in number of cases filed
during the recent years. In the spirit of bringing ustice closer to the
people of East Africa and enabling them access the Court9 the Court
decided to revie( its rules of procedures by removing the court
filing fees effective from April9 "#16. 'oday a litigant is not
re uired to pay any money as filing fees.
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1#$. /uring the period under revie(9 the Court installed a modern Case
Management and Jecording 0ystem (hich (as launched by the
EAC Heads of 0tate 0ummit during its E*tra2ordinary meeting on
6# th April9 "#1$ and has a provision for online filing of cases. 'his
provision (ill be activated after the Court has amended its Jules of
-rocedure to bring them into conformity (ith this I' development.
'he Court is planning to lin, its 0ub2Jegistries in -artner 0tates to
the Head uarters in Arusha during the inancial !ear "#1$%1&
(here it has made a provision of 0/ 6### in the budget.
'ake *ictoria +asin Commission
1#&. M%&% S*'% ')( during the period "#16%"#1$9 La,e ictoria Basin
Commission L BC5 continued to underta,e activities outlined in
the 0trategic -lan "#112"#13. 'he ,ey achievements for the
inancial !ear "#16%"#1$ and the ,ey priorities for the inancial
!ear "#1$%"#1& are geared to(ards implementation of the
aforementioned 0trategic -lan.
1#3. :iven the huge mandate of the Commission and its rapid e*pansion9
strengthening coordination capacity of the L BC 0ecretariat has
remained one of the ,ey development ob ectives. 'he activities
carried out relied on the mobili+ation of resources and as a sign of
confidence in the Commission7s capacity and ability to manage
financial resources9 /evelopment -artners have gradually increased
their level of funding of the Commission7s programmes. A Jesource
Center (hich provides access to documents and reports produced by
various -rogrammes of the Commission (as strengthened.
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1#4. M%&% S*'% ') 9 the Commission continued its efforts to enhance
cooperation bet(een it and other EAC Institutions9 organs and
sta,eholders. 'hrough the Mara -ro ect9 L BC developed a
Memorandum of nderstanding to facilitate the :overnments of the
Jepublic of enya and the nited Jepublic of 'an+ania to manage
the trans2boundary Biodiversity and (ater recourses in Mara Jiver
Basin. 'hrough the La,e ictoria Environment Management -ro ect
L EM- II59 the Commission contributed to updating of the La,e
ictoria isheries Management -lan and to coordinate the
development of )ater Jesources Information 0ystem for monitoring
surface and ground (ater and (ater uality. 'he implementation of
this development ob ective (as supported by the -opulation9 Health
and Environment -HE5 pro ect and La,e ictoria )ater 0upply and
0anitation -rogramme. 'he Commission has9 through La,e ictoria
)ater 0upply and 0anitation program9 contributed to theimprovement of (ater supply and sanitation infrastructure in the five
partner7s states.
1#;. M%&% S*'% ') 9 the Community is in the process of revie(ing the
plan of action and cost estimates for the hydrographical survey of
main and local navigational routes of La,e ictoria. 'he )orldBan, is supporting L BC to procure and install navigational aids
and local routes on La,e ictoria and also the implementation of the
oil spill and to*ic Chemicals Contingency -lan on the La,e. 'he
L BC continues to be faced by the deterioration of ecosystem9
climate change challenges9 environmental degradation9 droughts9
floods9 etc. 'o overcome all these challenges9 many activities have
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been underta,en by the support of Mount Elgon Jegional Ecosystem
Conservation -rogramme9 La,e ictoria Environment Management
-ro ect and the -lanning for Jesilience in East Africa through -olicy
Adaptation9 Jesearch and Economic /evelopment. L BC has
underta,en the basin2(ide strategy for 0ustainable Land
Management and the regional (ater hyacinth surveillance and
control strategy.
1#=. L BC has established (ildlife clubs in 1# 0econdary 0chools to
advocate for anti2poaching of elephants and rhinos in Maasai Mara
and 0erengeti> the training of 16 members of Mara Jiver 'rans2
boundary (ater resources users orum on Integrated )ater
Jesources Management plans.
11#. M%&% S*'% ') 9 the promotion of investment and sustainable
community livelihood in the La,e ictoria Basin remains one of
ma or ob ectives for the L BC. /uring the inancial !ear "#162
"#1$9 the Commission supported t(o small grant pro ects in J(anda
and Burundi on Community /riven /evelopment and rural
livelihood. L EM- II is supporting the implementation of
Community /riven /evelopment sub2pro ects for livelihood
improvement in the five EAC -artners states. 'o date9 a total of $4&
such subpro ects are being implemented and at varying stages.
111. M%&% S*'% ') 9 after highlighting the L BC achievements9 allo(
me to point out the ,ey priorities for the financial year "#1$%"#1&.
8ne of the ma or priorities is the strengthening of institutional and
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functional capacity of L BC (hich (ill be implemented by the
operationali+ation of the Jesult2Based Management 0ystem.
11". 'o enhance -artnership and collaboration (ith EAC Institutions9organs and other sta,eholders9 the Commission (ill continue to
harmoni+e policies9 la(s and standards to strengthen institutional
development and governance in natural resources management.
L BC (ill underta,e studies and put in place strategic plans9
regional standards and information systems to boost the sustainable
development of natural resources in the region. Improving public
health services (ill continue to be a ma or component for L BC
interventions during the inancial !ear "#1$%"#1&
116. 'he Commission has also included in its priorities the promotion of
Integrated )ater Jesources Management.
$nter Uni(ersity Council of East Africa
11$. M%&% S*'% ')( in collaboration (ith the Dational Commissions
and Councils for Higher Education9 Higher Education Institutions in
the -artner 0tates9 and other sta,eholders9 I CEA has continued to
develop instruments for harmoni+ation of higher education systems
in the Community in order to allo( free movement of students and
to facilitate mutual recognition of ualifications among the -artner
0tates. 'he instruments being developed include a harmoni+ed
regional uality assurance system9 a regional ualifications
frame(or, for higher education9 a higher education policy and
implementation strategy9 academic programme benchmar,s9 and
modules for training niversity staff in uality assurance. 'hese
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of the building has been selected. 'he construction costs for phase
one (ill be 0/ 19&6493=&. Construction (or,s (ill commence in
@uly "#1$ and (ill ta,e 63 (ee,s. 'he I CEA E*ecutive Committee
has decided that the construction should start (hile the :overnment
of the Jepublic of ganda is processing the change of the certificate
of title deed to be in the name of I CEA9 in order to avoid the ris,
of giving the contractor the possibility to change the construction
costs if deadlines are not observed.
11;. /uring the inancial !ear "#1$%"#1&9 I CEA (ill focus on
harmoni+ation of higher education systems for transforming East
Africa into a common higher education area.
'ake *ictoria ,isheries !rgani-ation11=. M%&% S*'% ')( the La,e ictoria isheries 8rgani+ation L 85
continued to e*ecute its mandate to coordinate the management of
the fisheries resources of La,e ictoria for sustainable development
and utili+ation and to spearhead a uaculture development in the
region as provided for in the Convention establishing the
8rgani+ation and the 0trategic ision 1===2"#1&. In the !
"#16%"#1$9 L 8 registered a number of achievements despite
limited funding. 8nly 63 of the approved budget (as remitted as
at April "#1$ as funding from -artner 0tates. At its ; th Jegular
0ession9 the L 8 Council of Ministers resolved that funding for
the 8rgani+ation should be routed through the Ministries of the East
African Community Affairs9 since L 8 is an organ of the EAC.
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1"#. -rovision of scientific information to guide the management of the
fisheries resources (as achieved through support from L EM- II
and EAC -artnership funds (hich funded Hydro2acoustic and Catch
Assessment 0urveys coordinated regionally but conducted at
national level by the respective (or,ing groups. Capacity building in
the harmoni+ation of fisheries and a uaculture policies9 and
enforcement of fisheries regulations through oint patrols (ere
facilitated under the African9 Caribbean and -acific :roup of 0tates
I0H II and 0mart ish -ro ects. 'he efforts focused on revie(ing
the isheries Management -lan "##=2"#1$9 and in the elaboration of
species management plans by developing the Dile -erch isheries
Management -lan "#1$2"#1=.
1"1. L 8 initiated the process to mainstream its operations into EAC
by conducting a study on (idening its scope and mandate and
transforming into East African isheries 8rgani+ation. 'he L 8 is
revising the Convention establishing it to bring on board the
Jepublics of Burundi and J(anda as provided for under Article
I of the Convention and also as directed by the ; th L 8
sectoral Council of Ministers> and the "; th EAC Council of Ministers
in Dov. "#16.
1"". M%&% S*'% ')( L 8 has been operating (ith under2budgets
follo(ing the ending of pro ects (hich contributed over of its
operation%recurrent budget. 'he full mainstreaming of L 8 to
EAC has added unforeseen e*penses. 'he De( Head uarters handed
over to the organi+ation has also added costs of running and
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maintaining the premises9 (hile the M'E Budget process dictated a
EJ87 increase in budget estimates from "#11%"#1". As a result9
the L 8 over the years has continued (ith a budget (hich is not
realistic9 and thus operates (ith over2e*penditures and borro(ings
(hich are escalated by late remittance or failure of -artner
0tates% isheries /epartments to remit Country Contribution.
1"6. M%&% S*'% ') 9 sustainable funding to L 8 is given priority in
the ne*t financial year budget to ensure the visibility of the
organi+ation is enhanced and different development -artners and
Collaborators are engaged in the efforts to manage the fisheries
resources. 'he 0ustainable management of the fisheries resources
guided by sound scientific data and information through the resource
monitoring studies is a ,ey area of focus in the budget of !
"#1$%"#1&. Effective Monitoring9 Control and 0urveillance
operations are intended to ensure the illegalities in fishing and
trading of immature fish are controlled and the declining trend of
Dile perch is reversed as directed by the L 8 Council.
1"$. L 8 adopted a co2management approach to managing the fisheries
resources of La,e ictoria and established grass2root institutions9 the
Beach Management nits BM s5 to be partners in management.
'he Budgets for ! "#1$%"#1& has prioriti+ed the building of the
capacities of these institutions through training and mentoring and
strengthening the net(or,s at different levels of governance at
national levels. 'he Budget for ! "#1$%"#1& has factored in the
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establishment of the Dational Management Committee as foreseen in
the Convention establishing L 8.
1"&. L 8 is also targeting to improve its internal controls through themigration to the 0 D Accounting 0ystem and recruiting an Internal
Auditor. 'he efficiency of the organi+ation (ill be enhanced (ith
increase of manpo(er to fill up the approved positions in the
structure. Ho(ever9 due to budget limitation9 the positions (ill be
filled in the follo(ing financial year. L 8 strategy is to develop
concept notes and mobili+e resources to enable the implementation
of the identified interventions. L 8 is committed to underta,e its
mandate to ensure sustainable management and utili+ation of the
fisheries resources and develop a uaculture in the region for socio
and economic benefits of the East Africans.
EAC Ci(il A(iation Safety and Security !(ersight Agency .CASS!A/
1"3. M%&% S*'% ')( the Civil Aviation 0afety and 0ecurity 8versight
Agency CA008A5 made several achievements during the inancial
!ear "#16%"#1$. Dotable of these are?
(i) -rovision assistance9 support and guidance to the Jepublic of
Burundi in the preparation and performance of the
International Civil Aviation 8rgani+ation ICA85
Comprehensive 0ystems Approach Audit. A dedicated team
(as stationed at Burundi Civil Aviation Authority from
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(ii) Assisting the -artner 0tates to develop and implement the
developed Corrective Action -lans arising out of the ICA8
Audits. Country missions to the -artner 0tates (ill be
strengthened to assess the levels of compliance to the regional
regulations. /evelopment and implementation of a
Communications% isibility 0trategy to boost the image of the
Agency>
(iii) 'he Agency (ill be introducing additional I' based systems
such as the Computer Based 'raining targeting increased
a(areness of the aviation security re uirements at aviation
facilities and installations.
East African 0e(elopment +ank
1";. M%&% S*'% ')( /uring the year under revie(9 the Ban,7s net
(orth gre( by 1& to 0/ 133 million by end of /ecember "#16
as compared to 0/ 1$$ million in "#1". 'he program to in ect
further 0/ =# million share capital9 (hich commenced in "##49 is
progressing (ell. By the end of "#16 the shareholders had paid2in
0/ 63.4 million of the commitment. 'he Ban, is leveraging itscapital to mobili+e additional resource from non2EA/B Members
such as 8rgani+ation of the -etroleum E*porting Countries 8-EC59
European Investment Ban, EIB5 and African /evelopment Ban,
:roup Af/B5. 'hese additional resources are critical in reali+ing
the Ban,7s vision of promoting socio2economic development in East
Africa.
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http://ccs.infospace.com/ClickHandler.ashx?ld=20140517&app=1&c=globososohosted&s=globososohosted&rc=globososohosted&dc=&euip=41.188.176.54&pvaid=6c4aea49712a4aa5803da14501140d26&dt=Desktop&fct.uid=globososo_1395070208_903080%253B%252&en=%2B4VCRfsaYrl9kB2kqguA%2Fk858oBg8f1Ax%2F1TE4yyGUxjxDOrQnlNrQeSyQt%2BbezHEp0XGPgmE1w%3D&du=www.eib.org&ru=http%3A%2F%2Fwww.eib.org%2F&ap=3&coi=771&cop=main-title&npp=3&p=0&pp=0&ep=3&mid=9&hash=74445E2FE764DF7092401769F557C8FEhttp://ccs.infospace.com/ClickHandler.ashx?ld=20140517&app=1&c=globososohosted&s=globososohosted&rc=globososohosted&dc=&euip=41.188.176.54&pvaid=6c4aea49712a4aa5803da14501140d26&dt=Desktop&fct.uid=globososo_1395070208_903080%253B%252&en=%2B4VCRfsaYrl9kB2kqguA%2Fk858oBg8f1Ax%2F1TE4yyGUxjxDOrQnlNrQeSyQt%2BbezHEp0XGPgmE1w%3D&du=www.eib.org&ru=http%3A%2F%2Fwww.eib.org%2F&ap=3&coi=771&cop=main-title&npp=3&p=0&pp=0&ep=3&mid=9&hash=74445E2FE764DF7092401769F557C8FE8/12/2019 East African Community BUDGET SPEECH 2014-2015
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efforts to(ards financial inclusion necessary for transforming the
economy of Burundi and the region as a (hole.
166. Loo,ing ahead9 during the year "#1$%1&9 the Ban, (ill continue to(or, more closely (ith the EAC in addressing infrastructure deficit
(hich pose a ma or constrain in reali+ing private sector led gro(th
and access to social services. In so doing9 the Ban, (ill continue to
(or, closely (ith the EAC 0ecretariat and -artner 0tates in
developing a legal and institutional frame(or, for the East African
Community und and operational modalities for the -ublic2-rivate
-artnership Jesource Centre. 'he EA/B (ill continue to partner
(ith other organs namely9 I CEA9 CA008A9 L BC and L 8.
Supplementary +udget for 'ake *ictoria +asin Commission
16$. M%&% S*'% ')( La,e ictoria Basin Commission received a und
from nited 0tates Agency for International /evelopment to support
coordination of the integrated -opulation9 Health and Environment
in @anuary "#1$. 0ome of the activities outlined in the Assistance
Agreement are very urgent and need to be implemented during the
inancial !ear "#16%1$ to ensure the -rogram meets the targets
agreed upon (ith the /evelopment -artner. 'hese activities
included?
(i) -articipation of $ staff for 6 days in the L BC coordination
meetings " meetings5 for -HE activities>
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(ii) 'o convene Jegional -olicy 0teering Committee meetings for
-HE for " days for 1& participants 1# from -artner 0tates and
& L BC staff5 in isumu>
(iii) 'o hold a meeting (ith 'echnical )or,ing :roup and
0ta,eholders to develop a basic pac,age of integrated amily
-lanning9 Jeproductive Health9 Maternal Health>
(iv) 'o support provision of amily -lanning commodities and
Jeproductive Health %MCH- and nutrition services to CB8s
and groups (or,ing (ith MEJEC- and L EM- 11>
(v) 'o attend -HE international conference in )ashington for &
days>
(vi) 'o validate a -HE 0trategic -lan for 6 participants of each
-artner 0tate in isumu for 6 days> and
(vii) 'o underta,e a (or,shop to develop -HE Monitoring and
Evaluation rame(or,.
'he re uest for the 0upplementary Budget is to the tune of 0F
1$4964# to allo( the implementation of the activities enumerated
above during the inancial !ear "#16%1$.
PART V CHALLENGES AND 6AY FOR6ARD
16&. M%&% S*'% ')( a number of global and regional level challenges
have slo(ed do(n the process of implementing programmes9
pro ects and activities of the Community. )ithin the region9 the
issue of establishing predictable and sustainable financing of the
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regional programmes is still pending. /omestication of national la(s
to conform to the EAC Common Mar,et -rotocol to enable the
citi+ens en oy the rights and freedoms enshrined in the -rotocol and
its subse uent implementation is yet to be fully done by all the
-artner 0tates. 'here is still the re2occurring Don2'ariff Barriers
D'Bs5 or restrictions other than customs duties or tariffs and other
specific mar,et re uirements that ma,e importation or e*portation of
products difficult and costly (ithin the region namely (eighbridges9
police roadbloc,s9 non2recognition of the EAC certificates of origin9
lac, of mutual recognition of uality mar,s9 re2testing of products9
delays by statutory boards in releasing the results of analysis of
samples and delays in issuance of import licenses among others. As
leaders9 (e need to intensify sensiti+ation and a(areness creation
among our people for them to reali+e the full benefits of the
integration process.
PART VI EAC BUDGET ESTIMATES FOR FINANCIAL YEAR
2014/2015
163. M%&% S*'% ')( I (ould li,e no( to highlight the broad features
of the Budget Estimates for the Community for the inancial !ear"#1$%"#1&. 'he details of these Estimates for the priority areas to be
funded under the "