By Business Insider Reporter
A major leap in East Africa’s integration agenda is on the horizon as the East African Community Competition Authority (EACCA) prepares to officially enforce a region-wide merger control regime, effective November 1, 2025. This landmark development is poised to streamline cross-border mergers and acquisitions across the EAC’s eight member states, fostering a more predictable and investor-friendly business environment.
Under the new regime, any merger meeting the defined financial thresholds must now be notified to the EACCA only, bypassing national filings. However, any pending merger cases before national authorities prior to 1 July 2025 will still be concluded by those bodies.
The new framework will apply to transactions involving companies with cross-border operations in Tanzania, Kenya, Uganda, Rwanda, Burundi, South Sudan, Democratic Republic of Congo and Somalia – collectively representing one of the fastest-growing economic blocs in Africa.
What the new regime means
For businesses operating in more than one EAC country, the merger control regime introduces a centralised notification process for qualifying mergers, effectively eliminating the need to file separately in multiple jurisdictions.
This is expected to reduce regulatory duplication, cut costs, and shorten deal timelines – key considerations for investors and multinational companies eyeing expansion in the region.
Previously, companies had to navigate a fragmented web of national competition authorities.
Key thresholds for notification
A merger will be subject to notification if the combined turnover or assets of the merging companies in the EAC equals or exceeds USD 35 million, and at least two merging entities have a combined turnover or assets of US$20 million, unless they derive at least two-thirds of their revenue in the same partner state.
Failure to notify a qualifying merger could lead to penalties of up to 10 percent of the undertaking’s annual turnover within the EAC – a strong signal that the EACCA intends to enforce compliance with rigour.
Boosting investor confidence
According to regional trade experts, the merger regime is expected to enhance transparency, level the playing field, and build investor confidence, particularly in sectors such as financial services, telecommunications, agriculture, logistics, and retail where cross-border consolidation is common.
“This is a clear sign that the EAC is maturing as a single market. By harmonising competition rules, we’re likely to see increased M&A activity and more robust private sector growth,” said Angela Mboya, a Nairobi-based mergers and acquisitions advisor.
Integrated investment destination
The timing of this move is crucial. With global investors increasingly looking to emerging markets for growth, East Africa’s efforts to unify its regulatory frameworks place it in a strong position to compete for capital with larger blocs like ECOWAS and SADC.
Additionally, the merger regime supports broader goals under the African Continental Free Trade Area (AfCFTA) by encouraging regional value chains and improving the ease of doing business across borders.
What businesses should do now
Firms considering mergers or acquisitions in the region should begin preparing for compliance with the EACCA’s new framework.
This includes reviewing planned or ongoing transactions for potential thresholds, seeking legal guidance to ensure proper documentation and filings and understanding the new fee structures and timelines for approvals The rollout of the EAC merger control regime is more than a regulatory update – it’s a strategic move toward regional economic integration and competitiveness.
