The East African Development Bank (EADB) has refuted allegations regarding its lending operations, which were made by former Cabinet Secretary Raphael Tuju during a March 24 interview.
In a statement issued on Thursday, EADB maintained that its financial operations adhere strictly to legal and governance principles across its four member states.
“The Bank states, unequivocally, that all its operations are governed by the rule of law and conducted in strict compliance with governance principles that guide banking operations across its four member states,” the statement read.
EADB emphasized that all loans granted by the institution undergo rigorous vetting processes, without favoritism towards any individual or institution based on status or influence.
The Bank cited the ongoing court proceedings, expressing confidence that judicial rulings in the United Kingdom and Kenya already validate its position.
“The Bank remains confident that the facts, as presented by the Bank in court, will prevail, as evidenced in prior rulings at the High Court in the United Kingdom; and at the High Court, Court of Appeal, and Supreme Court in Kenya,” EADB asserted.
The statement comes amid heightened scrutiny over EADB’s role in a protracted legal battle with Dari Limited, a case that has seen multiple rulings in favor of the bank across various courts.
This follows Tuju in an interview claiming that some of the bank’s board members had taken loans and later written them off.
Tuju, in a live radio interview, alleged that EADB had engaged in unfair practices and attempted to blackmail him in a loan dispute.
“The problem is that I am not compliant with the kind of blackmail they tried to impose on me,” Tuju stated.
He detailed his grievance with the bank, explaining that EADB had approved a Sh1.2 billion loan, Sh900 million for land and Ksh 300 million for development, with an additional Sh100 million contribution from him.
“They paid for the land but withheld the development funds, violating our contract,” Tuju claimed.
In response, EADB issued a statement on Thursday, March 27, strongly rejecting the accusations and reaffirming its commitment to transparency, legal compliance, and sound banking governance across its four member states.
“The Bank states, unequivocally, that all its operations are governed by the rule of law and conducted in strict compliance with governance principles that guide banking operations,” the statement read.
