World Bank Debars eCitizen Builder Webmasters Kenya For 5 Years

The World Bank Group has imposed a minimum five-year debarment on Webmasters Kenya Limited and its founder and CEO, James Ayugi, citing fraudulent and obstructive practices during an international procurement process.

The decision, contained in Sanctions Board Decision No. 147 (Sanctions Case No. 790), places renewed scrutiny on the Kenyan technology company, which has been associated with the development of eCitizen, Kenya’s central digital government services platform.

Somalia Tender Dispute

According to findings published by the World Bank’s Integrity Vice Presidency (INT), the misconduct occurred during procurement processes for development projects in Somalia.

Webmasters Kenya submitted bids to develop a Single Business Registration System for Somalia’s Ministry of Commerce and Industry under two World Bank-financed programmes: the Somali Core Economic Institutions and Opportunities Project (SCORE) and the Somalia Capacity Advancement, Livelihoods and Entrepreneurship through Digital Uplift Project (SCALED-UP).

The World Bank found that Webmasters Kenya included the CVs of two proposed key experts in its technical bids, indicating that the professionals were committed to and available for the contracts.

However, when the World Bank contacted the individuals, both denied authorising the use of their CVs or consenting to being listed as key experts.

The Sanctions Board found that the misrepresentation was intended to improperly secure a financial benefit of $98,000, which had been allocated for expert remuneration.

World Bank Audit

The World Bank also found that Webmasters Kenya obstructed a subsequent investigation.

Following concerns raised during the procurement process, the bank issued an audit letter in November 2022 requesting accounting records, subcontractor agreements, invoices and corporate financial information.

Despite receiving extensions and 10 written reminders, according to the findings, Webmasters Kenya did not provide the requested records. The company instead submitted broader project deliverables and high-level timelines.

The Sanctions Board concluded that the company had materially impeded the World Bank’s inspection and audit rights.

Ayugi Responds

Responding to the debarment, Ayugi described the matter as an “administrative lapse” and a “compliance issue”, while presenting it as a learning experience for local technology companies.

He also pointed to the company’s work in Somalia, saying the system it deployed had enabled local businesses to register in less than three days.

The World Bank’s debarment, however, remains in effect for a minimum of five years, subject to the company’s fulfilment of specified conditions for release from sanction.

The decision is likely to draw increased scrutiny to Webmasters Kenya’s public-sector contracts, particularly given the company’s association with eCitizen, a critical component of Kenya’s digital government infrastructure.

Webmasters Kenya bills the national government between $773,000 and $1.55 million (KSh100 million to KSh200 million) every month to run and support the eCitizen gateway. The payments come amid concerns over systemic vulnerabilities within the platform, with a recent report by Kenya’s Auditor-General raising questions over its financial controls.

The audit found that $2.7 million (KSh349 million) was overcharged to citizens through unapproved convenience fees, while $982,000 (KSh127 million) in government revenue was allegedly diverted from the official Paybill number 222222 to unverified private bank accounts.