A whistleblower has raised serious claims against the East African Development Bank (EADB), accusing it of corruption, conflicts of interest, and poor governance in a petition to the East Africa Legislative Assembly (EALA).
During a presentation before EALA’s Committee on Friday chaired by Kenneth Musyoka, Peter Odhiambo of the Justice Alliance alleged that EADB was being run like a “mafia-style cartel” that serves private interests instead of the people of East Africa.
“This bank, whose vision was to foster development in our region, has become captive to a few people and will remain so unless EALA rises to the occasion,” Odhiambo said.
He highlighted conflicts of interest among senior officials, pointing out former Director General Vivienne Yeda for questionable transactions while also serving as chair of Kenya Power and Lighting Company (KPLC).
Odhiambo linked her to dealings where KPLC paid Lake Turkana Wind Power, a firm that had also received an EADB loan, with over KSh18.5 million ending up in a German account flagged for money laundering.
Odhiambo also accused the bank of misusing diplomatic immunity to avoid scrutiny. He explained that Kenya’s Ministry of Foreign Affairs had already confirmed to courts that EADB does not enjoy absolute immunity under the Vienna Conventions.
The allegations sparked outrage among EALA members, who revealed they too had faced intimidation.
Tanzanian MP Dr. Abdullahi Makawe said he received threats, including an arrest warrant, after speaking publicly on a petition involving the bank.
He condemned the move as an attempt to silence elected leaders.South Sudan’s Gai Deng said the Assembly was shocked by the petition and vowed to pursue the matter.
Odhiambo further criticized the bank for spending USD 4.4 million on legal fees between 2016 and 2024 while failing to pay dividends to shareholders. He warned that a Machakos High Court ruling declaring the EADB Act of 2014 unconstitutional put the bank’s operations in Kenya at risk.
He also raised concerns about the credibility of ratings given by agencies, alleging conflicts of interest with Stanbic-linked representatives.
Odhiambo said entrenched board members had overstayed in office, some for more than 18 years, and accused them of writing off their own loans.
The petition urged EALA to take immediate action by probing the inflated legal fees, the entrenched tenure of board members, and the lack of oversight that has allowed the rot to persist.
“This embarrassment of an East African institution stems from weak oversight by EALA, central banks of member states, the Council, the Board, and East African citizens,” Odhiambo stated, urging lawmakers to act on behalf of taxpayers who own the bank.
