The East African Development Bank (EADB) has firmly defended its lending policy in response to allegations made by former Foreign Affairs Minister Raphael Tuju, who is embroiled in a dispute with the bank over a Ksh 1.2 billion loan.
In a statement, the Bank made it clear that all of its operations are governed by the rule of law and strictly adhered to governance principles that guide banking practices across its four member states. It emphasised that every loan facility it provides is subjected to thorough processes, with no favouritism shown to any individual or institution, regardless of their status or profile.
During a live radio talk show on Monday, Tuju explained that the bank’s board had approved the loan for a project on a 1.2-acre plot of land, following a positive assessment from an audit firm confirming the project’s viability.
“They approved Ksh 1.2 billion – Ksh 900 million for the land purchase and Ksh 300 million for development costs. I also contributed Ksh 100 million of my own,” he stated.
Tuju contended that the bank had reneged on the deal by failing to disburse the Ksh 300 million, despite his repayment of the Ksh 900 million. He accused the bank of resorting to blackmail and coercion.
“They paid the vendor Ksh 900 million and then refused to release the Ksh 300 million. That’s a breach of contract. I didn’t receive the Ksh 300 million, yet they still expect me to repay the loan. They are blackmailing me, and I refused to give in,” he argued.
However, EADB countered in its statement that it could not address some of the allegations made during the talk show, as they were concerned with ongoing legal matters. The bank remains confident that the facts it has presented in court will ultimately prevail, as demonstrated by previous rulings in the High Courts of the UK, as well as Kenya’s High Court, Court of Appeal, and Supreme Court.
Despite this, the Bank urged the media to uphold the principles of objectivity and verify claims made regarding its operations, offering to provide any facts upon request.
Meanwhile, the Judiciary has cautioned Tuju to refrain from commenting on the case, as it remains sub judice.
“We urge all parties to avoid litigating their cases through the media or social media. We also call on the media to verify facts before reporting to prevent the spread of misinformation or disinformation,” stated Judiciary Spokesperson Paul Ndemo.
The case is still pending before the Supreme Court after the judges recused themselves following accusations of misconduct made by Tuju. He has also submitted a petition to the Judicial Service Commission for an investigation into the matter.
