The East African Development Bank (EADB) has strongly denied allegations made by former Jubilee Secretary General and Cabinet Secretary Raphael Tuju regarding its credit procedures. Tuju made these claims during a live radio interview on Monday, March 24, accusing the bank of engaging in unfair practices and exerting pressure on him over a loan dispute.
However, EADB has dismissed these accusations, insisting that it upholds transparency, legal compliance, and good banking standards. In a statement released on Thursday, EADB expressed deep concern over the claims made during the radio talk show, describing them as misleading. The bank maintained that its lending operations are guided by the rule of law and adhere to governance standards across its four member countries.
It emphasized that all loan approvals undergo rigorous scrutiny and are not influenced by an individual’s status or connections. The bank also made it clear that it could not comment on certain aspects of the claims raised in the interview because they involved ongoing legal proceedings.
EADB assured the public that the courts had consistently ruled in its favor in past disputes, including cases in the United Kingdom and Kenya’s High Court, Court of Appeal, and Supreme Court. This comes as the bank faces heightened scrutiny over its prolonged legal battle with Dari Limited, a company associated with Tuju.
The legal dispute has seen multiple court rulings favoring EADB, reinforcing its position that the lending procedures were followed correctly.Tuju, however, made serious allegations against the bank’s leadership, claiming that some EADB board members had received loans and later written them off.
He further alleged that the bank had attempted to manipulate him in the loan dispute. According to Tuju, EADB approved a Ksh 1.2 billion loan, with Ksh 900 million allocated for purchasing land and Ksh 300 million meant for development. He claimed that despite contributing an additional Ksh 100 million of his own funds, the bank only paid for the land but withheld the development funds, violating their contract.
Tuju’s remarks suggest that he believes the bank deliberately frustrated his business operations by not disbursing the full loan amount as agreed. He accused EADB of using coercive tactics against him, insisting that he had refused to comply with their alleged blackmail attempts.
These claims have added fuel to the controversy surrounding the dispute, drawing mixed reactions from the public.
EADB remains firm in its defense, pointing to previous court rulings that have upheld its position. The bank insists that its procedures are lawful and transparent, and it rejects any suggestion that it engages in favoritism or undue influence. While Tuju’s allegations have sparked debate, the courts will ultimately determine the validity of his claims.
