Prime Cabinet Secretary Musalia Mudavadi and Treasury Cabinet Secretary John Mbadi have called on African governments to increase domestic contributions to the African Union (AU), arguing that the continent cannot achieve meaningful political and economic independence while relying heavily on external partners to finance its institutions.
The two Cabinet Secretaries made the case during an Extraordinary Session of the African Union Executive Council and Ministers of Finance on Financing the African Union in Accra, Ghana, where member states discussed ways of establishing a more predictable and sustainable financial foundation for the continental organisation.
Mudavadi, who also serves as Cabinet Secretary for Foreign and Diaspora Affairs, represented President William Ruto, who is championing the AU’s institutional reform agenda.
He maintained that financial independence was fundamental to Africa’s ability to make independent decisions, implement continental policies and pursue its long-term development ambitions without excessive exposure to the priorities of external financiers.
The Kenyan delegation included Mbadi, whose participation underscored the importance of linking diplomatic commitments with practical financing mechanisms and sound public financial management.
The discussions come at a time when African governments are grappling with rising public debt, competing development priorities and growing uncertainty over international development assistance.
For Kenya, the debate is about more than increasing the AU’s budget. It is also about strengthening Africa’s bargaining position in international affairs by ensuring that the continent has the resources to finance decisions made by its own institutions.
Mudavadi argued that the AU’s continued dependence on external development partners undermines its institutional autonomy and makes it difficult to guarantee consistent implementation of programmes agreed upon by member states.
He urged African governments to move beyond declarations of commitment and honour financing obligations already agreed upon through previous continental resolutions.
Kenya backs 0.2 per cent levy to raise AU revenue
At the centre of Kenya’s proposal is the implementation of a 0.2 per cent levy on eligible imports across African Union member states.
The financing mechanism, which forms part of the Kigali Decision on Financing the Union, is intended to establish a predictable source of revenue that would reduce the organisation’s dependence on voluntary contributions and external donor support.
According to figures presented during the discussions, full implementation across member states could generate approximately US$1.2 billion annually, equivalent to about KSh155 billion.
The proposal would require participating countries to establish appropriate domestic mechanisms for collecting and remitting the levy in accordance with the agreed framework.
Mbadi backed the financing approach, emphasising the need for African countries to mobilise resources internally rather than continue relying on unpredictable external funding.
The Treasury Cabinet Secretary also called for stronger financial discipline, transparent expenditure and a results-oriented budgeting system to ensure that additional contributions translate into tangible benefits.
The proposal is particularly significant because the AU has struggled to achieve its ambitions of financial self-reliance despite previous commitments by member states to increase their contributions.
Kenya believes that implementing the agreed financing arrangements would give the organisation a stronger revenue base and improve its capacity to support development, peace and security initiatives across the continent.
Mudavadi endorses Option C as roadmap for financial independence
Mudavadi identified the proposed Option C framework as a practical pathway towards building a financially sustainable and more effective African Union.
The framework is built around four interconnected pillars designed to address weaknesses in the organisation’s financing, budgeting and institutional management.
The first pillar involves developing a high-value programme agenda anchored in the AU’s Agenda 2063, the continent’s long-term development blueprint.
Under this approach, the organisation would prioritise programmes capable of delivering measurable improvements in the lives of African citizens rather than spreading limited resources across numerous competing initiatives.
Mudavadi argued that continental programmes must demonstrate clear economic and social benefits to justify the financial commitments expected from member states.
The second pillar involves establishing a consolidated budget architecture supported by a Medium-Term Expenditure Framework.
This would improve financial planning, strengthen expenditure controls and ensure that available resources are allocated according to clearly defined priorities.
Kenya maintains that improved budgeting should go hand in hand with measurable performance indicators to enable member states to assess whether their contributions are producing meaningful results.
The third pillar focuses on predictable domestic resource mobilisation through the proposed 0.2 per cent import levy and the establishment of a US$1 billion African Union Peace Fund endowment.
The fourth pillar seeks to make the AU leaner and more efficient by eliminating duplication of responsibilities, improving coordination between institutions and making better use of existing resources.
Together, the proposals are intended to address the financial and administrative weaknesses that have constrained the organisation’s ability to implement its continental mandate.
US$1 billion Peace Fund proposed to strengthen Africa’s security architecture
Another major component of the discussions was the establishment of a US$1 billion endowment for the African Union Peace Fund.
The proposed fund is intended to provide a more reliable financing mechanism for the continent’s peace and security operations, reducing the uncertainty associated with depending on external partners to support interventions.
Africa continues to face multiple security challenges, including terrorism, violent extremism, armed conflicts, political instability and humanitarian emergencies.
These crises often require urgent financial interventions, yet the availability of resources can be affected by competing international priorities and changing donor commitments.
Kenya believes that a properly funded Peace Fund would give the AU greater flexibility to respond to emerging threats while strengthening African ownership of peacebuilding initiatives.
Mudavadi emphasised that predictable financing must be accompanied by transparent management, prudent investment decisions and reliable replenishment arrangements.
The proposal therefore seeks not only to increase the amount of money available to the organisation but also to establish a sustainable mechanism for managing and deploying resources.
For the continent, the ability to finance its own peace and security priorities remains an important measure of institutional independence.
External donor dependence raises questions about Africa’s sovereignty
The renewed push for financial autonomy comes amid concerns about the unpredictability of international development financing.
African countries have historically relied on external development partners to support various programmes, including healthcare, education, infrastructure, humanitarian interventions and institutional reforms.
While such partnerships have played an important role in financing development, dependence on external resources can expose continental programmes to changes in donor priorities.
Mudavadi warned that the changing global economic environment, rising sovereign debt vulnerabilities and geopolitical uncertainty had made it increasingly important for Africa to strengthen its own financial institutions.
He argued that the continent must mobilise domestic resources, deepen cooperation among African financial institutions and develop innovative financing arrangements that retain greater control of its development agenda.
Kenya also endorsed a structured partnership between the African Union and African multilateral financial institutions to mobilise domestic capital and support the implementation of Agenda 2063.
The proposed collaboration is expected to strengthen African-owned financing institutions and create additional opportunities for continental investment.
The underlying argument is that Africa must increasingly use its own financial resources and institutions to address its development challenges rather than rely disproportionately on external assistance.
However, achieving this ambition will require more than political declarations. Member states must demonstrate the willingness and financial capacity to honour their commitments while ensuring that the resources collected are managed responsibly.
Ruto’s institutional reform agenda takes centre stage
The Accra meeting also provided an opportunity for Kenya to advance President Ruto’s continental reform agenda.
Ruto serves as the African Union Champion for Institutional Reform, a responsibility that places Kenya at the centre of efforts to strengthen the organisation’s effectiveness, accountability and financial sustainability.
Mudavadi’s participation on behalf of the President reflected Nairobi’s determination to maintain momentum around the proposed reforms.
The Kenyan delegation argued that an effective African Union must have the financial capacity to implement decisions made by its member states.
This includes improving the relationship between the AU’s political commitments and the resources available to execute them.
The discussions also highlighted the importance of eliminating overlapping institutional responsibilities, strengthening coordination and ensuring that the organisation delivers measurable value to African citizens.
Ghana’s Foreign Affairs Minister Samuel Okudzeto Ablakwa and other participants reportedly acknowledged the importance of the ongoing reform agenda.
Ghana also proposed hosting an Extraordinary Summit on African Financial Institutions in 2027, an initiative welcomed by the Kenyan delegation.
The proposal could provide another platform for African governments to discuss how domestic capital can be mobilised to finance continental development priorities.
January 2027 summit to determine next steps
The Accra deliberations are expected to produce recommendations for consideration by African Heads of State and Government during the African Union’s 40th Ordinary Session in January 2027.
The summit will provide an important opportunity for member states to evaluate the proposed financing arrangements and determine how existing commitments can be translated into practical implementation measures.
For Kenya, the immediate priority is securing agreement on a predictable financing model that strengthens the AU’s revenue base while ensuring accountability in the utilisation of resources.
The success of the proposed 0.2 per cent import levy will depend heavily on the willingness of member states to implement the mechanism domestically and remit the agreed contributions.
Questions surrounding the financial burden on importing countries, collection arrangements, expenditure priorities and oversight will also be important in determining whether the proposal achieves its intended objectives.
The proposed US$1 billion Peace Fund will similarly require clear investment and replenishment arrangements to ensure that it remains sustainable.
Ultimately, African governments will have to demonstrate that increased contributions will result in a more effective institution capable of addressing the continent’s development and security challenges.
The bigger question: Can Africa finance its own future?
The push for an independently financed African Union touches on a broader debate about the continent’s position in the global economic and political order.
Africa possesses significant natural resources, a growing consumer market, a youthful population and considerable investment opportunities. Yet its continental institutions continue to face financial constraints that limit their ability to implement ambitious programmes.
The irony is that an organisation representing 55 member states should still struggle to secure sufficient and predictable resources from the countries it serves.
Kenya’s proposal seeks to confront this contradiction by shifting the financing conversation from dependence on external development partners towards collective domestic responsibility.
But the success of the initiative will ultimately depend on whether African governments are prepared to make difficult budgetary decisions, strengthen revenue collection and subject continental institutions to rigorous accountability.
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