The Eastern Africa Association is a source of insightful and helpful publications, guides, and advice for all visitors to our website. Contributors include EAA analysts, our Members, and a wide range of experts and official commentators. As a key service for Members only, we produce a regular Newsletter which contains our analysis of developments in the region.
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This is a commentary and comments are welcome by email to: info@eaa.co.ke . The views expressed here are not necessarily those of the Association.
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The recent by-elections in Kenya were poorly managed and there were many reports of voter bribery and ballot stuffing which does not portend well for the 2027 General Elections. It remains to be seen if the current Broad-Based Government will be in place for the elections. The economy is showing signs of a pick up but with the increasing debt levels, Government cash flows are under pressure.
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The election debacle has left Tanzania in a precarious position and the President and her Government face an uphill task convincing the population that things will change. The economy, which was trending up and to the left on charts is likely to move in the opposite direction.
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Elections will take place in January 2026; campaigning began in September 2025 but there are signs of suppression of the opposition which does not bode well. The economy is clearly on an upward trajectory which has been confirmed by S&P Global’s increase in the country’s rating.
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Rwanda remains politically stable and while a Peace Agreement is now in place in relation to the conflict in the DRC, it is not certain how effective it will be. The economy continues to exceed expectations but the increase in debt levels is a concern.
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For Ethiopia, 2025 closes in a more stable position, but not yet on a transformed footing. The conditions for sustained growth exist, yet their durability will hinge on political stability, the Government’s ability to keep reforms on track, and whether resources are directed toward productive sectors rather than captured by networks that have long weakened state capacity.
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Somalia successfully managed to secure reduction of USD 2 billion in its debt which should ease the burden on the country. The country’s stock exchange has signed an arrangement with its counter part in Nairobi. Recent remarks about the Somali community in the US could result in reduced diaspora remittances which will be an economic concern.
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