National Assembly’s Departmental Committee on Finance and National Planning has resolved to invite Treasury CS John Mbadi and the management of the East African Development Bank (EADB) to shed light on the lender’s operations, governance structure and legal status in Kenya.
The decision followed submissions by former Rarieda MP Raphael Tuju, who appeared before the committee to raise concerns over the East African Development Bank (Amendment) Bill, 2026, warning that the proposed changes could entrench legal gaps around accountability, immunity and access to justice.
Tuju told MPs the bill’s legal framework requires closer scrutiny, especially on provisions that shield the bank, its officers and assets from ordinary legal processes.
He argued that as drafted, it risks preserving immunity provisions without sufficiently clarifying how aggrieved parties can seek redress where disputes arise from the bank’s operations.
According to Tuju, the concern touches on constitutional principles of fairness, equality before the law and the right to access justice.
He submitted that Kenya should not pass amendments that leave citizens, borrowers or counterparties exposed to an institution that enjoys broad immunity while operating within the country’s legal and financial space.
“The issue is not whether the bank should exist or whether regional development financing is useful. The issue is whether any institution operating in Kenya should enjoy immunity in a manner that defeats access to justice,” Tuju told the committee.
Tuju also pointed to what he described as gaps between the EADB’s founding legal instruments and Kenya’s current constitutional order, saying Parliament has a duty to interrogate whether older treaty-based privileges remain compatible with the 2010 Constitution.
He urged the committee to examine whether the Bill clearly defines the extent of immunity granted to the bank, the circumstances under which such immunity may be waived, and the mechanisms available for resolving disputes involving the institution.
The former MP further asked lawmakers to establish whether EADB’s operations in Kenya are subject to sufficient oversight by the National Treasury, Parliament and relevant regulators.
Committee chairperson Kuria Kimani said the issues raised were weighty and required direct responses from both the National Treasury and the bank’s management.
Kimani said the committee would invite CS Mbadi and EADB officials to explain the bank’s mandate, ownership structure, operations in Kenya, legal privileges and the practical implications of the proposed amendments.
The East African Development Bank is a regional development finance institution established to promote growth and investment among member states. Its legal framework has historically included privileges and immunities intended to protect the bank’s independence and operations.
