The East African Development Bank was a creation of Treaty for East African cooperation signed in June 1967. The founder members of the bank are the three sisters of the East African Community - Kenya, Uganda and Tanzania.

It is provided that these states should hold a majority of the equity capital of the bank but some other states and institutions are free to contribute to the bank's capital stock. The authorized capital of the bank is both in local and convertible foreign exchange. 

In addition to its equity capital the bank also raises loan funds as part of its ordinary resources both locally and from abroad. It also accepts special finds for administration for example from external aid agencies which are designed to promote the objectives of the bank. These are classified as special resources.