NAIROBI, Kenya, Aug 24 – The World Bank has barred Webmasters Kenya Ltd Chief Executive Officer James Ayugi from participating in Bank-financed projects for at least five years after finding him and the company liable for fraudulent and obstructive practices in Somalia.
The sanction follows a World Bank Sanctions Board decision issued on June 8, 2026.
The case involved two World Bank-funded projects in Somalia, the Somali Core Economic Institutions and Opportunities Project and the Somalia Capacity Advancement, Livelihoods and Entrepreneurship through Digital Uplift Project.
The Bank found that Webmasters and Ayugi misrepresented the availability of two experts listed as key personnel in a technical proposal and contract.
The two experts were unaware that they had been named for the project, but Ayugi signed certifications confirming their availability and later reaffirmed this during contract negotiations.
The Sanctions Board concluded that Ayugi had at least recklessly misled relevant authorities to secure the contract.
The Board also found that Webmasters obstructed a World Bank audit by repeatedly delaying responses to requests for documents and failing to provide most of the records sought.
Webmasters disputed the findings, arguing that the inclusion of the experts was an innocent error and that the missing documents resulted from ordinary record-keeping limitations.
The World Bank rejected the explanation, citing the company’s size and previous experience with Bank-funded contracts.
The Bank said Webmasters had at least 100 employees and had secured nearly $1 million in World Bank-financed contracts between 2018 and 2020.
The five-year sanction is a debarment with conditional release. After the minimum period, Ayugi and Webmasters will only be eligible to participate in World Bank-financed projects if they take appropriate remedial measures and establish a credible integrity compliance programme.
The sanction also covers affiliates directly or indirectly controlled by Ayugi or Webmasters.
The World Bank will notify other multilateral development banks covered by its cross-debarment agreement, allowing them to consider enforcing the sanction under their own rules.
