The East African Community Competition Authority (EACCA) Commences Mandatory Merger Review

The East African Community (EAC) has taken a major step toward deeper regional economic integration. On 1 July 2025, the East African Community Competition Authority (EACCA) issued a General Notice announcing that it will begin receiving notifications for Mergers and Acquisitions (M&A) with cross-border effects starting 1 November 2025.
This marks the operationalization of a mandatory regional merger notification system under the EAC Competition Act, 2006 and the EAC Competition (Sharing of Mergers and Acquisitions Notification Fees) Regulations, 2025. The framework significantly reshapes regulatory obligations for businesses operating across the EAC’s eight Partner States: Burundi, the Democratic Republic of Congo, the Federal Republic of Somalia, Kenya, Rwanda, South Sudan, Uganda, and Tanzania.

1. New EACCA Notification Thresholds

A cross-border merger or acquisition must be notified to the EACCA if it satisfies both of the following conditions:

1. The combined turnover or assets (whichever is higher) of the parties in the EAC equals or exceeds USD 35 million; and
2. At least two undertakings involved in the transaction each have a combined turnover or assets of USD 20 million or more in the EAC.

Exception: Notification is not required where each party generates at least two-thirds of its turnover or assets within a single Partner State.

2. “One-Stop Shop” Approach and the Impact on Kenya

The new EACCA merger review system introduces a streamlined “one-stop shop” for qualifying regional transactions.

• Effect on National Authorities: Once a cross-border merger is notified to the EACCA, parties do not need to file separate notifications with national competition regulators such as the Competition Authority of Kenya (CAK).
• Comparison with Kenya’s Thresholds: In Kenya, mergers are notifiable to the CAK if the parties’ combined turnover or asset value exceeds Ksh 500 million. Transactions below that threshold are exempt.

With the new EACCA regional thresholds, any qualifying transaction involving Kenyan and other EAC entities will fall under the EACCA’s jurisdiction, eliminating duplicate filings and simplifying the regulatory process.

3. Compliance Obligations and Fees

a) Prohibition on Implementation

Under Section 11 of the EAC Competition Act, 2006, a notifiable merger cannot be implemented before being notified to—and approved by—the Authority.
Businesses must evaluate early whether their transaction requires notification. Failure to notify a merger that meets the threshold may attract penalties. For example, in Kenya, the CAK may impose a fine of up to 10% of the preceding year’s gross turnover and may declare the merger void.

b) Notification Fees

Notifications must be submitted in the prescribed form, accompanied by supporting documents and the applicable fee in USD:

Aggregate Turnover/Asset Value	Notification Fee (USD)
USD 35M – 50M	45,000
Above USD 50M – 100M	70,000
Above USD 100M	100,000

Fees are payable directly into the EACCA bank account.

c) Key Action Points for Businesses

Undertakings involved in cross-border M&A within the EAC should immediately adjust their transaction planning in light of the November 1, 2025 effective date:

1. Threshold Assessment: Determine whether the transaction meets the EACCA’s USD 35M and USD 20M thresholds.
2. Transaction Timing: Ensure that any deal closing on or after 1 November 2025 is notified to the EACCA prior to implementation.
3. Jurisdictional Considerations: Transactions already under review by national regulators before publication of the notice will continue to be handled by the respective national authority.

How We Can Help

At AJS Advocates, we have a strong record of successfully guiding clients through M&A transactions across East Africa. Our team provides comprehensive support—including legal due diligence, regulatory approvals, negotiations, documentation, and completion—to ensure seamless execution of cross-border deals.