The National Assembly’s Departmental Committee on Finance and National Planning has resolved to summon Treasury Cabinet Secretary John Mbadi alongside East African Development Bank (EADB) management. This follows concerns raised about the East African Development Bank (Amendment) Bill, 2026, as lawmakers seek clarity before finalising the legislation.

The amendment bill, sponsored by the Majority Leader, proposes changes to the East African Development Bank Act (Cap. 493A). Notably, it requires National Assembly approval before the Treasury CS can authorise disbursement of public funds from the Consolidated Fund to the EADB. Currently, the Act allows the Treasury CS to allocate funds without parliamentary consent. The changes aim to enhance oversight and accountability in line with constitutional public finance principles.

Concerns Raised by Raphael Tuju

Former Rarieda MP and ex-Cabinet Secretary Raphael Tuju appeared before the committee on July 28, highlighting significant gaps in the existing law that the amendment bill does not address. While acknowledging the bill’s step towards curbing unchecked access to taxpayers’ money, Tuju criticised the Act for granting broad immunities to the bank and its officials. He argued these protections shield them from civil and criminal liability, undermining transparency and accountability.

Tuju warned that if these provisions remain, Kenya risks being the first country to grant such sweeping immunity to an international institution’s officials.

Committee’s Response and Further Scrutiny

Committee Chairperson Kuria Kimani welcomed Tuju’s input, emphasizing the need for thorough examination to avoid endorsing unconstitutional provisions. He directed the secretariat to invite CS Mbadi and EADB executives to provide detailed explanations on the bank’s operations.

Other MPs, including Homa Bay Town’s Peter Kaluma, echoed calls for careful review to prevent approval of unconstitutional regulations. Kitui Rural MP David Mboni questioned the bank’s financial returns to Kenya, noting the absence of dividends despite the country’s investment. Turkana South MP John Ariko urged a detailed comparison of the current Act and proposed amendments to identify further reforms.

Questions on EADB’s Regulation

Chairperson Kimani also raised the issue of whether EADB should be regulated under Kenyan financial laws, including the Central Bank Act, given its function as a financial institution within the country.