MPs summon CS Mbadi after Tuju raises concerns on amendment bill
By Mabonga Makhanu, July 28, 2026The National Assembly’s Departmental Committee on Finance and National Planning has resolved to invite Treasury Cabinet Secretary John Mbadi and the management of the East African Development Bank (EADB) to appear before it and explain the bank’s operations before lawmakers conclude consideration of the East African Development Bank (Amendment) Bill, 2026.
The decision follows submissions by former Rarieda MP and former Cabinet Secretary Raphael Tuju, who appeared before the committee on Tuesday, July 28, saying the proposed legislation fails to address key legal gaps in the existing law governing the regional lender.
The amendment bill, sponsored by the Leader of the Majority Party, seeks to amend the East African Development Bank Act (Cap. 493A) by requiring the approval of the National Assembly before the Cabinet Secretary for the National Treasury can authorise the release of public funds from the Consolidated Fund to the bank.
Currently, Section 2 of the Act empowers the Treasury CS to commit and disburse funds to the EADB without parliamentary approval. The proposed changes are intended to strengthen legislative oversight and accountability in line with constitutional principles on public finance.
Tuju’s demands
However, Tuju told the committee that while the bill addresses the issue of Treasury disbursements, it leaves intact several provisions he described as deeply flawed.
“The mischief with respect to access to taxpayers’ money has been smoked out. That is only a first step. In the fullness of time, the architects of the 2014 EADB Act scheme will face the law,” Tuju said.
He particularly faulted the Act for granting sweeping immunities to the bank and its officials, arguing that the protections shield them from both civil and criminal liability and undermine transparency and accountability.
Tuju further claimed that Kenya would become the first country in the world to grant such broad immunity to officials of an international institution if the provisions remain unchanged.
Finance committee’s submissions
Committee Chairperson Kuria Kimani welcomed Tuju’s submissions, saying they had introduced important perspectives that require lawmakers to scrutinise the Bill more thoroughly before making recommendations.
“Indeed, we want to thank you for these new perspectives. This new information now calls on us to thoroughly scrutinise this bill to make sure we do not adopt any provisions that are in breach of the Constitution,” Kimani said.
He directed the committee secretariat to invite Treasury CS John Mbadi and EADB executives to appear before MPs and explain the bank’s operations.
“I now direct that the secretariat extends an invitation to the CS National Treasury and the bank’s executives to highlight the operations of the bank to this committee,” he added.
Kaluma’s suggestions
Homa Bay Town MP Peter Kaluma also backed further scrutiny of the law, saying Parliament must avoid approving unconstitutional provisions.
“We must avoid any situation where the legislature approves unconstitutional regulations,” Kaluma said.
Kitui Rural MP David Mboni expressed concern over the bank’s financial performance, questioning why Kenya had not received dividends despite its investment in the institution.
“Whom does EADB report to? Is it the Council of Ministers of the East African Community or whom? This bank is yet to declare any dividends, and Kenya hasn’t received any returns from its investment in the bank despite the bank having paid millions to its lawyers,” he said.
Turkana South MP John Ariko urged the committee to compare the existing Act with the proposed amendments to identify any additional provisions that require reform.
EADB’s regulation
Kimani also said the committee wants clarity on whether EADB should be regulated under Kenya’s financial laws, including whether its operations should fall under the Central Bank Act if it functions as a financial institution in the country.