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Mudavadi, Mbadi back AU financing reforms to cut donor reliance

Alphie Yesterday, 8:15 PM 3 min read
Musalia Mudavadi and John Mbadi, who support African Union financing reforms

Kenya supports an import levy, a proposed peace fund endowment and tighter budget controls to strengthen the African Union’s financial independence.

Prime Cabinet Secretary Musalia Mudavadi and Treasury Cabinet Secretary John Mbadi have backed AU financing reforms to reduce donor dependence. Kenya supports greater African funding alongside stronger controls over how the continental body spends its resources.

Mudavadi endorsed the proposed framework, known as Option C, at an extraordinary session in Accra, Ghana, on Friday. The meeting brought together the African Union Executive Council and ministers of finance.

He represented President William Ruto, the AU Champion for Institutional Reform. Mudavadi argued that Africa’s ability to finance its institutions underpins its political and economic independence.

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He also warned that reliance on external partners limits the AU’s freedom to implement decisions and pursue Agenda 2063.

What the AU financing reforms propose

Option C centres on high-impact programmes, coordinated budget planning, domestic resource mobilisation and more efficient institutions. Kenya wants the AU to prioritise initiatives that offer measurable benefits to African citizens.

Mudavadi said those priorities should also attract investment and demonstrate tangible returns on member states’ contributions. Kenya additionally supports a consolidated budget framework with a medium-term spending plan to improve allocation and expenditure discipline.

A central proposal involves implementing a 0.2 per cent levy on eligible imports to generate predictable funding. The framework also proposes a US$1 billion African Union Peace Fund endowment, with arrangements for regular replenishment.

These measures aim to strengthen the organisation’s capacity to finance peace and security operations. Meanwhile, the Kenyan delegation backed eliminating duplicated responsibilities and improving coordination across AU institutions to make better use of existing resources.

Kenya calls for accountability alongside contributions

However, Mudavadi cautioned that higher contributions must go hand in hand with transparency and prudent financial management. He said the AU must demonstrate value for money as member states take greater responsibility for its finances.

Earlier commitments under Johannesburg Decision 578 and Kigali Decision 605 sought to increase member-state financing. Despite progress, Mudavadi acknowledged that countries had largely missed the agreed targets, leaving the organisation dependent on external partners.

He said unpredictable foreign funding, debt pressures and geopolitical uncertainty made stronger African financial institutions increasingly urgent. Kenya therefore supports a structured partnership between the AU and the African Association of Multilateral Financial Institutions.

Mudavadi said the partnership would mobilise African capital and help advance Agenda 2063, the continental development blueprint. He also urged countries not to let differing economic circumstances derail efforts to secure the AU’s finances.

The Accra deliberations are expected to produce financing recommendations for consideration by African heads of state and government. Those recommendations will go before the 40th Ordinary Session of the AU Assembly in January 2027.

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Alphie

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