Whistleblower Lifts Lid on Governance Scandals at East African Development Bank

Whistleblower Lifts Lid on Governance Scandals at East African Development Bank

Public interest litigator and Justice Alliance Petitioner, Mr. Peter Odhiambo Agoro, presenting a petition before the EALA Committee at Cooperative Bank House, Nairobi, today.

Nairobi, Kenya - September 19, 2025

A storm is brewing over the East African Development Bank (EADB) after a whistleblower petitioned the East African Legislative Assembly (EALA), exposing what he termed as “decades-long rot” within the regional lender.

Mr. Peter Agoro, who appeared before an EALA committee today, accused the Bank of operating under a flawed governance structure, entrenched conflicts of interest, excessive legal fees, shaky legal standing, and what he described as “immunity for impunity.”

“This is the second time I am appearing before this committee, and I must emphasize that the citizens of East Africa, who are the ultimate shareholders of the Bank, have been betrayed,” Mr. Agoro told the lawmakers. “I am ready to take even a bullet because my integrity and conscience are driven by the truth.”

Agoro’s petition painted a picture of instability at the top. The EADB’s apex body, the Council of Ministers of Finance from Kenya, Uganda, Tanzania, and Rwanda, was said to be undermined by frequent leadership changes. Kenya alone has had four finance ministers between 2019 and 2024, creating gaps that, according to him, shrewd executives have exploited.

The Bank’s Board also came under sharp scrutiny. While the charter allows only two three-year terms for private-sector representatives, Mr. Agoro alleged that some members have sat for 18 years, borrowing from the Bank and even writing off their own loans. Advisory positions such as that of Mr. Kotecha of Stanbic Uganda have reportedly lasted for more than 40 years without legal basis.

“This is nothing short of a mafia-style board whose shadowy interests have captured the institution,” Mr. Agoro said.

The petition cited cases of board members doubling as borrowers, with loans allegedly written off under their watch.

He also pointed to the tenure of former Director General Vivienne Yeda, who simultaneously chaired Kenya Power and Lighting Company (KPLC), despite EAC staff rules prohibiting such dual appointments. Agoro linked the arrangement to irregular transactions involving Lake Turkana Wind Power, where millions of dollars passed through German accounts before being flagged as money laundering and later returned.

“The conflict of interest is glaring, yet no one has been held accountable,” Mr. Agoro said.

One of the most startling revelations concerned legal expenditures. Between 2016 and 2024, EADB reportedly paid more than USD 4.4 million (KES 574 million) in legal fees to five firms in Kenya, Uganda, and the UK.

“This is outrageous, given that the Bank has not declared a profit or paid any dividends to shareholders in the same period,” He argued. “Lawyers and board members are the only ones smiling to the bank.”

Agoro further highlighted a 2024 High Court ruling in Machakos, Kenya, which declared the EADB Act unconstitutional. The judgment found that the Act allowed the Finance CS to allocate funds to the Bank without parliamentary approval or Auditor General oversight.

“This flawed law, championed by conflicted officials, exposed the Bank to serious litigation and undermined its credibility as a regional development institution,” he said.

The petitioner also criticized the Bank’s reliance on “non-existent diplomatic immunity” to shield officials from prosecution. Courts in Kenya, he said, had received clarification from the Ministry of Foreign Affairs that EADB does not enjoy absolute immunity under international law, since it lacks a valid Host Country Agreement.

“This is nothing but an attempt to use diplomatic cover to evade justice,” Agoro charged.

Agoro urged EALA to take decisive action to protect East African taxpayers, stressing that the Bank had become captive to vested interests.

“Our prayer is that the Assembly deliberates and pronounces itself expeditiously. Unless oversight is enforced, the EADB will remain a playground for a few individuals while citizens bear the cost,” he concluded.

The committee has acknowledged receipt of the petition and confirmed it will deliberate on the matter.