Law Summary: African Development Bank Act, 1964 (Kenya)
- Law Title: African Development Bank Act
- Act Number: No. 4 of 1964
- Jurisdiction: Republic of Kenya
- Date of Assent: 26 March 1964
- Date of Commencement: 7 April 1964
- Purpose:
To implement Kenya’s obligations under the African Development Bank Agreement and regulate Kenya’s participation in the operations of the African Development Bank (AfDB).
Key Provisions
- Financial Provision (Section 3):
- All payments due to the AfDB under the Agreement shall be charged to the Consolidated Fund.
- The Minister for Finance is authorized to raise loans or issue securities to make such payments.
- Legal Force of Bank Agreement (Section 4):
- Specific provisions of the Bank Agreement listed in the Schedule have the force of law in Kenya.
- Exceptions include customs duties on goods sold in Kenya and charges that reflect services rendered.
Provisions of the AfDB Agreement with Legal Effect in Kenya (Schedule)
- Article 23: General Powers of the Bank
- Borrowing, investing, guaranteeing securities, technical assistance, and advisory services.
- Article 24: Special Borrowing Powers
- The Bank can request member countries to lend funds for projects in other member territories.
- Article 27: Use of Currencies
- Restrictions are prohibited on the use of currencies held or received by the Bank.
- Article 28: Maintenance of Currency Value
- Members must compensate or receive adjustment when their currency’s value significantly changes.
- Article 51–57: Legal Status, Privileges, and Immunities
- The Bank has full juridical personality and is immune from legal process, seizure, and taxation.
- Assets, communications, and officials enjoy specific immunities and privileges to facilitate Bank operations.
- Article 59: Waiver of Immunities
- The Board of Directors may waive immunities in specific circumstances to protect justice and the Bank’s interests.