Only 24 percent of the African Union's institutional reform programme budget has been supplied by member states, far short of the commitments made to secure the Union's financial independence.

The shortfall was highlighted in the AU Assembly's February 2025 decision on reform, a document presented by Kenya's President William Ruto, who has served as the Union's Champion for Institutional Reform since February 2024.

While the Assembly noted progress in financial governance, including the AU Peace Fund reaching its $400 million endowment target, it also warned that earlier financing decisions remain only partially implemented and that peace operations continue to rely heavily on external partners.

To keep political momentum, the Assembly adopted Ruto's progress report in February 2025 and established a ten‑member oversight committee of Heads of State and Government under his leadership to steer implementation.

The same resolution tasked the Permanent Representatives Committee, with support from the AU Commission, to continue reviewing the structures of AU organs and to clarify the division of responsibilities among the Union, regional economic communities, regional mechanisms and member states.

On peace and security, the Assembly authorised a five‑member panel of African experts to examine the Union's framework, reflecting concerns about a shifting security environment and the need for more effective institutional responses.

Further consultations were requested on financing barriers, and the Assembly called for a review of the legal, structural and financial implications of operationalising the African Court of Justice, including urging member states to ratify the Malabo Protocol.

The February 2026 reform decision reiterated that member states were still financing only 24 percent of the programme budget and urged an expansion of the Peace Fund endowment from $400 million to $1 billion, alongside diversification of funding sources and stronger partnerships with African financial institutions.

The Assembly also instructed that an extraordinary session of the Executive Council, bringing together foreign affairs and finance ministers, be convened by November 2026 to discuss the Union's financing and the proposed Peace Fund expansion.

AU Deputy Chairperson Selma Malika Haddadi highlighted the importance of trust, accountability and cooperation among governments to make continental institutions effective, underscoring the broader challenge of collective financing.