The only way to figure out a solution is to investigate. Fortunately all you need is a tarp and a spade (good back helps too).
- pick an area where the paint is spalling
- remove the soil on the inside of the wall down to the bottom of the wall
What you need to find is what, if any, precautions have been taken to prevent water moving through the breeze block. You might see
- tar based emulsion which breaks down with time
- roofing paper- ineffective very fast
- 40 ml pond liner - best solution
- nothing
You need to prevent water moving from inside the bed to outside. This is what is causing the paint to spall off.
A "last a lifetime" solution would be:
- add small drainage holes at the bottom of wall to allow water to drain out
- line the inside of bed, top to bottom with food grade epdm pond liner
- I cannot miss an opportunityopportunity to speak of my bestbest friend for landscapinglandscaping: four inch perforated drain pipe with sleeve, just perfect for channeling water where you want it to go. The more you use it, the more you'll like it!
This means digging out all the beds and redoing the job with the right materials. If you try coating the outside of the wall with a waterproof compound you will be keeping the water inside the breeze block which will cause them to break apart in a few years.
For the amount of work involved why not consider getting a good job done with an interlock retaining wall?