The East African Development Bank (EADB) is at the center of a storm after a whistleblower’s explosive petition accused the regional lender of being nothing more than a “mafia-style cartel” entrenched in corruption, conflicts of interest, and systemic rot.
In damning testimony before the East African Legislative Assembly (EALA), Peter Odhiambo of the Justice Alliance told MPs that EADB has been hijacked by powerful insiders who run it for private gain at the expense of East Africans.
“This bank, which was created to drive regional development, has been captured by a clique. Unless this Assembly acts, it will remain their personal cash cow,” Odhiambo charged.
Conflicts of Interest and Questionable Deals
Odhiambo directly implicated former Director General Vivienne Yeda in a web of shady dealings, accusing her of using her dual role at EADB and as KPLC chair to push dubious transactions. He claimed that more than KSh18.5 million was funneled into a German account linked to money laundering after questionable payments involving Lake Turkana Wind Power and EADB loans.
“EADB is hiding behind fake claims of diplomatic immunity to avoid scrutiny. Even Kenya’s Ministry of Foreign Affairs has confirmed that this so-called immunity does not shield them from accountability,” he told legislators.
Threats Against MPs
Shockingly, Odhiambo’s revelations were met with confirmation from EALA members that they too had been targeted for intimidation.
Tanzanian MP Dr. Abdullahi Makawe disclosed that after raising questions on EADB, he was served with an arrest warrant simply for speaking to the media.
“Imagine, an international arrest warrant for merely discussing a petition before this House. This is how far the cartels behind EADB are willing to go to silence us,” Makawe said furiously.
Other legislators, including South Sudan’s Gai Deng, expressed outrage and vowed to dig deeper into the scandal.
Lavish Legal Fees, Zero Returns
The petition also revealed that while East Africans reap nothing from the bank, insiders gorge themselves. Between 2016 and 2024, Odhiambo said, EADB paid USD 4.4 million in legal fees but declared zero dividends to its shareholders — the citizens of East Africa.
Board members allegedly pocket USD 3,000 per sitting while lawyers and advisors ride the gravy train unchecked.
Unconstitutional Operations
Adding to the rot, Kenya’s Machakos High Court has already declared the EADB Act of 2014 unconstitutional, exposing how the Finance CS could siphon taxpayers’ money into EADB without parliamentary oversight.
Odhiambo warned: “What stops them from channeling public money through EADB, then using their cronies to borrow it by proxy and later write off the loans?”
Sham Ratings, Entrenched Cartels
The Justice Alliance petition also blasted credit ratings issued by Moody’s, accusing the agency’s East Africa representative — tied to Stanbic — of rubber-stamping inflated ratings (BB+) not backed by fundamentals.
Meanwhile, some board members have clung to their seats for up to 18 years — four times longer than legally allowed — while others allegedly borrow from the bank and then sit on the board to write off their own loans.
Call for Accountability
“This is an embarrassment to East Africa,” Odhiambo declared. “EALA, central banks, member state governments, and the public have all failed in oversight. It is time to act for the taxpayers who own this bank.”
The petition demands a full investigation into the EADB’s financial dealings, legal fee payouts, and entrenched board members — some reportedly entrenched for more than four decades.
EALA MPs now face mounting pressure to assert their oversight mandate and crack down on what critics are calling one of the most brazen financial scandals in the region.
