East African countries are poor due to several factors particularly due to vicious circle of poverty prevalence, conflict and civil war trap, natural resource trap, land locked with bad neighbors and bad governance. These are traps discouraging the incentive for economic growth and brought about poor performance of the economy; thus, leads to difference in income associated with difference in institutional arrangement and structure. The average per capita income of the region is $333 with minimum average of $82.64 and maximum average of $882.46. Dummy intercept indicated that each country has its own unique features. On average, Kenya is performing better from members in the region followed by Tanzania, Rwanda and Eritrea respectively. Panel data technique is employed to identify factors affecting economic performance of the region and the random effects outcome shows that investment, inflation and exploded population growth affects economic performance.