The East African Development Bank (EADB) faces scrutiny after regional lawmakers called for an investigation into alleged mismanagement, embezzlement of funds, and corruption following a public petition presented to the East African Legislative Assembly (EALA) on December 6, 2023. EALA lawmakers referred to the petition during a plenary sitting held on March 19, 2024, in Nairobi, Kenya. The petitioner, Justice Alliance, a civil society movement advocating for social justice in Kenya and East Africa, has urged for transparency and accountability within the bank. Peter Odhiambo Agoro, the founder and Chairman of Justice Alliance, emphasized the need for an inquiry into the bank's operations, citing concerns over the mismanagement of funds and irregularities in loan procedures. The petition, which was referred to the EALA Committee on Legal, Rules, and Discipline, demands decisive action to restore trust in the bank and ensure proper oversight of its activities. It calls for the reinstatement of EALA's authority to supervise all organs and institutions of the East African Community (EAC) and the investigation of individuals allegedly involved in malpractice within the EADB. ALSO READ: EADB comes to Rwanda Agoro, who said he is a human rights activist based in Nairobi, pointed out that after his research, he established that there is mismanagement of funds under the management of EADB. “So, it was imperative to find out exactly those who are mandated to manage EADB bank on why they are abusing these powers. You find that there are some loans that are being written off without following the due process,” he said, pointing out that some of loans are unsecured, and adding that diplomatic immunity was in some cases being abused. “If you look at it keenly, it is an elaborate scheme to swindle this money. So, that was the basis of our petition,” he observed. Established in 1967 under the Treaty of the former East African Cooperation, the EADB has undergone restructuring over the years, becoming one of the surviving institutions of the previous East African Community. With its ownership now including four EAC member states—Kenya, Uganda, Tanzania, and Rwanda—the bank plays a crucial role in regional development initiatives. However, concerns have been raised over the bank's financial performance. According to the petition, the EADB has not provided dividends or returns to its shareholders, including EAC partner states and other financial institutions, for the past decade. Lawmakers within the EALA stressed the importance of overseeing the bank's operations, given its significance in regional development projects. They emphasized the need for transparency and accountability, urging the involvement of the EAC Council of Ministers to address the issues raised by the petition.
