The East African Development Bank (EADB) has dismissed claims made by former Jubilee Secretary General Rapahel Tuju regarding the loans issued by the financial institution.
In a statement dated Thursday, March 27, the bank maintained that it had procedures that guided its decision to issue loans.
The bank added that it was compliant with various regulations in its operations.
Tuju, who has been in a legal dispute with the bank over a loan, had claimed that some board members of the bank were issued with loans - which were later written off.
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He also accused some officials of the bank of trying to blackmail him over his Ksh1.2 billion loan.
"As such, all loan facilities advanced by the bank to its customers are subjected to rigorous processes across the board without favouritism to individuals or institutions based on rank or profile," read the statement in part.
"Whilst the Bank cannot comment on some of the allegations made during the talk show because they touch on active matters in court, it remains confident that the facts, as presented by the Bank in court, will prevail as evidenced in prior rulings at the High Court in the United Kingdom; and at the High Court, Court of Appeal, and Supreme Court in Kenya."
EADB was formed in 1967 and is an organ of the East African Community (EAC). The bank is currently owned by Kenya, Uganda, Tanzania and Rwanda.
According to Tuju, he had a loan agreement of Ksh1.2 billion with the bank for a project in Karen. However, they only disbursed Ksh900 billion for the purchase of land in Karen.
He claimed that the bank failed to disburse the remaining amount, thus violating their contract. He added that the bank wanted him to repay the loan in full despite only getting the Ksh900 billion.
