Former Cabinet Secretary Raphael Tuju has expressed serious reservations about the proposed amendments to the East African Development Bank (EADB) Act, highlighting potential loopholes that could undermine parliamentary oversight and accountability.

Appearing before the National Assembly's Finance and Planning Committee on July 28, 2026, Tuju criticized a clause requiring Parliament to approve Kenya's subscription to the bank within 30 days. If Parliament fails to act within this timeframe, the subscription is automatically deemed approved. He warned this could be exploited to bypass thorough parliamentary scrutiny, especially if Parliament is in recess or dissolved.

Tuju stated: "There is a provision that Parliament has to approve whatever is asked for within 30 days; failure to do so means it is deemed approved. What happens if Parliament is in recess or dissolved? This mischief must be corrected."

The former minister also raised concerns about the immunity granted to EADB employees, including directors and officers, from legal proceedings unless the bank explicitly waives this immunity in writing. He questioned the lack of a robust accountability framework, noting that EADB does not fall under the Central Bank of Kenya's regulatory oversight.

Tuju further highlighted the absence of auditing by the Auditor-General, pointing out that this gap limits transparency over the bank’s financial operations despite Kenya’s shareholder status.

Calls for Greater Transparency and Oversight

Tuju’s warnings come amid broader parliamentary scrutiny of EADB’s operations. Kitui Central MP David Mboni questioned the bank’s failure to declare dividends despite receiving substantial taxpayer funds, noting payments made to law firms instead.

Mboni remarked: "Whom does EADB report to? The bank has never declared dividends but has paid millions to law firms."

Homa Bay Town MP Opondo Kaluma urged a comprehensive review of the EADB Act beyond the current bill to safeguard national interests.

Kaluma urged: "We need to look at the EADB Act beyond the bill to secure the interest of this country."

Molo MP Kuria Kimani, chair of the committee, announced plans to summon EADB directors to provide input on the bill and clarify the bank’s operations.