High Court directs Mbadi to disclose Kenya's funding to EADB, orders audit review

The High Court has ordered Treasury Cabinet Secretary John Mbadi to submit a detailed report to Parliament on Kenya’s total contributions to the East African Development Bank (EADB) since 2014 and directed an audit amendment.

The ruling follows a petition filed by Paul Lihanda Nusu, who challenged the legality and transparency of Kenya’s financial commitments to EADB.

The petitioner argued that the lack of public participation and accountability in the ratification of the ="https://www.standardmedia.co.ke/business/business/article/2001509016/long-serving-eadb-boss-exits-after-17-years">EADB Act 2014 contravened constitutional principles.<

In his petition, Nusu sought a court declaration that the Treasury had violated Article 10 of the Constitution by failing to uphold principles of public participation, transparency, and accountability in managing public funds.

 He also called for disclosure of minutes, memoranda, and public participation records leading to the ratification of the EADB Act.

The court found that Treasury’s failure to provide Parliament with records of public expenditure regarding EADB contributions raised concerns over compliance with constitutional requirements.

Consequently, it ordered Mbadi to disclose the total financial contributions made to the bank and directed the Auditor General to amend audit records accordingly.

“The court directs the Treasury Cabinet Secretary to present a full report to Parliament on all funds disbursed to EADB from 2014 to 2023 and to facilitate an audit amendment,” the ruling stated.

The judgment also questioned the constitutionality of granting EADB immunity from judicial proceedings, as outlined in Article 44 of the EADB Charter.

The court ruled that such immunity contradicts Articles 48 and 50 of the Constitution, which guarantee access to justice and the right to a fair trial.

Further, the court declared that certain sections of the EADB Act were inconsistent with the Constitution and directed Parliament to review the legal framework governing Kenya’s financial obligations to the regional bank.