Bill seeks Parliamentary approval for EADB funding

The National Assembly will have greater oversight over public funds sent to the East African Development Bank (EADB) if a new Bill before Parliament is approved.

 The East African Development Bank (Amendment) Bill, 2026 seeks to require parliamentary approval before the National Treasury commits or disburses money from the Consolidated Fund to the regional lender.

 The Bill, sponsored by Majority Leader Kimani Ichung'wah, also seeks to strengthen accountability in the use of public funds.

 Currently, the Treasury Cabinet Secretary can authorise payments to the bank without first obtaining the approval of the National Assembly. The proposed law seeks to change that.

 "The principal objective of this Bill is to amend the East African Development Bank Act to require the approval of the National Assembly prior to the Cabinet Secretary authorising a charge or issuance of public funds from the Consolidated Fund to the East African Development Bank," the memorandum to the Bill states.

 It says the amendment is intended "to enhance legislative oversight and accountability in line with the principles of public finance as set out under the Constitution".

 Under the Bill, the Cabinet Secretary for the National Treasury will only make payments to the Bank after Parliament appropriates the funds and the Controller of Budget approves the expenditure.

 The Cabinet Secretary will also be required to submit an annual report to the National Assembly.

 The report must be presented within three months after the end of every financial year. It will contain details of all payments made from the Consolidated Fund to the Bank.

 The Bill also introduces parliamentary oversight over borrowing undertaken to finance Kenya's obligations to the Bank.

 Where the Treasury intends to raise loans or issue securities, it must first obtain the approval of the National Assembly.

 The relevant parliamentary committee will have 30 days to consider the request and table its report. If the House fails to pass a resolution within that period, approval will be deemed to have been granted.

 The Bill further provides that any money received from the East African Development Bank, or raised through such borrowing, will be paid into the Consolidated Fund.

 The funds will then be available for use in accordance with the law governing the Consolidated Fund.

 The legislation also proposes amendments to the bank's charter. It seeks to strengthen the protection of the bank's assets and operations in member states.

 One amendment grants the bank creditor status equal to that enjoyed by international financial institutions such as the International Monetary Fund, the World Bank, the International Development Association, the African Development Bank and the African Development Fund.

 The Bill also strengthens the bank's legal immunity.

 It provides that the bank may only be sued where it has expressly waived its immunity in writing. Even then, the waiver will not extend to the execution of court orders against the Bank's assets.

 The Bill further protects the bank's property and assets from seizure, confiscation, nationalisation or other forms of government action.

 Its premises will also enjoy protection from searches, except as provided under the Charter.

 According to the memorandum, the proposed amendments are aimed at safeguarding the assets of the East African Community and its institutions.

 The Bill states that it does not delegate legislative powers or limit fundamental rights and freedoms.

 It also states that the proposed law does not concern county governments because it does not affect devolved functions.

 The memorandum further notes that the amendments will not result in additional public expenditure.

 If enacted, the law will strengthen Parliament's oversight of Kenya's financial commitments to the East African Development Bank while enhancing legal protections for the regional lender and its assets.