World Bank Sanctions eCitizen Founder Over Fraudulent Tender Practices
James Ayugi, the founder of eCitizen, along with his company Webmasters Kenya Ltd, has faced serious penalties from the World Bank due to fraudulent activities during a tender process. This issue involves a project worth Sh12.7 million and has resulted in Ayugi and his firm being banned from participating in any World Bank projects for a period of five years.
According to a notification from the World Bank, which was issued on June 8, 2026, the blacklisting stems from a tender related to a project in Somalia. During the bidding process, Ayugi allegedly misrepresented the availability of two critical experts required for the project, using their credentials without their permission.
The World Bank’s Sanctions Board stated, “Both James Ayugi and Webmasters Kenya Ltd. are sanctioned for fraudulent and obstructive practices,” as outlined in their guidelines for selecting consultants. These practices not only misrepresented the availability of the experts but also hindered the bank’s ability to perform its required inspections and audits.
The contract in question aimed to enhance access to essential digital financial services and government services in Somalia, particularly focusing on entrepreneurship and employment for women. Initially, it was managed by the Somalia Ministry of Finance and later by the Ministry of Commerce and Industry. The project officially began on August 8, 2019, and is expected to conclude on June 30, 2026.
During the bidding phases on July 25 and August 6, 2020, Ayugi submitted proposals that identified the personnel involved. They included affirmations from the key staff about their availability for the project, which later turned out to be misleading. The World Bank has interpreted this as a calculated effort to defraud the institution of Sh12.7 million.
The Integrity Vice President of the World Bank remarked that these misrepresentations misled the project’s implementing unit and the bank itself, leading to the improper claim of funds meant for the key staff.
This isn’t the first time Ayugi has been embroiled in controversies. His firm has faced multiple allegations of financial misconduct, as reported by the Auditor General. Recently, there were claims made before Parliament that Sh9.4 billion was improperly withdrawn from the eCitizen platform due to questionable fees. The Public Accounts Committee has summoned Webmasters Kenya Ltd to provide explanations on the matter, stressing the need for accountability regarding the collection of funds from the public and the approvals behind these processes.
