Published on 05/03/2025
Parliament has passed the East African Community Mediation Agreement Bill, 2024, aimed at resolving long-standing issues surrounding the pension and retirement benefits of former employees of the dissolved East African Community (EAC).
The House also adopted the Report of the Committee on East African Community Affairs presented by the Chairperson, Hon. Nsaba Buturo, during the plenary sitting on Wednesday, 05 March 2025.
The Minister of State for East African Community Affairs, Hon. Magode Ikuya, who moved the motion on the Bill said that Uganda needs to comply with the agreement it made with Kenya and Tanzania.
“The purpose of this Bill is to domesticate the agreement to ensure that the clause is enforced as part of the law of Uganda. Secondly, since 40 years or so following the dissolution of the community, some things happened including the sharing of assets, but employees were supposed to enumerated according to certain terms which had not yet been done,” he said.
The adoption with an amendment ensures the full domestication of the 1984 EAC Mediation Agreement.
The Bill comes after years of uncertainty for former EAC employees, who have faced disparities in their pension payments compared to their counterparts in Kenya and Tanzania.
The government’s application of a different pension calculation formula, as opposed to the Mediation Agreement, has led to significantly lower payments for Ugandan nationals. With the Bill’s passage, the government is now mandated to harmonise these benefits to ensure fairness and equality for all former employees.
Hon. Nsaba Buturo emphasised the importance of government intervention in addressing the pension arrears owed to former EAC employees, many of whom have waited for decades.
“Government must ensure that those who have not been paid receive their dues without further delay,” Buturo stated.
Following his presentation, the Bill was debated and adopted by Parliament, with the committee’s recommended amendment to ensure the full legal effect of the East African Community Mediation Agreement.
The Bill also addresses a proposal to introduce a seven per cent interest on outstanding liabilities owed to former EAC employees.
While a 1993 letter from the Solicitor General suggested that Uganda had adopted this interest rate, the committee determined that it was not part of the original Mediation Agreement. They recommended that the relevant ministries explore this proposal through administrative means rather than legislation.
After the Bill’s passage, Minister Makuya Igode expressed his gratitude, thanking the Members of Parliament for their support. He highlighted the importance of the Bill in fulfilling Uganda’s regional obligations and ensuring that the concerns of former EAC employees are addressed.
The passage of the Bill is a significant milestone for Uganda, not only in fulfilling its regional obligations but also in addressing the unresolved financial obligations stemming from the defunct East African Community.
