The East African Development Bank (EADB) has denied the allegations about its loan practices, which were made by former Jubilee Secretary General and Cabinet Secretary Raphael Tuju on Monday, March 24, during a radio interview.
On Thursday, EADB issued a statement denying the allegations and stating that it deals with transparency, legal compliance and good banking practices.
"The East African Development Bank (EADB) takes great exception to comments and allegations made in an interview during a live radio talk show in Nairobi, Kenya in the morning hours of Monday, March 24, 2025, touching on its lending operations," part of the statement reads.
The EADB stated that its operations are governed by the rule of law and are conducted in strict compliance with governance rules in its four member countries.
"The Bank states unequivocally that all its operations are governed by the rule of law and conducted in strict compliance with governance principles that guide banking operations across its four member states," the statement said.
EADB stressed that all loans go through rigorous approval processes and are not influenced by a person’s status or connections.
The Bank stated that it could not comment on some of the allegations made during the talk show, as they pertain to active court cases.
"The Bank remains confident that the facts, as presented by the Bank in court, will prevail, as evidenced in prior rulings at the High Court in the United Kingdom, as well as the High Court, Court of Appeal, and Supreme Court in Kenya," EADB stated.
This comes as the Bank faces increased scrutiny over its legal dispute with Dari Limited, a case in which multiple courts have ruled in its favor.
Tuju had claimed in an interview that some EADB board members took loans and later canceled them. He also accused the bank of unfair practices and attempting to pressure him in a loan dispute.
"The problem is that I am not compliant with the kind of blackmail they tried to impose on me," Tuju said during a live radio interview.
He explained that the bank had approved a Ksh 1.2 billion loan; Ksh 900 million for land and Ksh 300 million for development, while he contributed an additional Ksh 100 million.
"They paid for the land but withheld the development funds, violating our contract," Tuju claimed.
