World Bank Bans PwC Kenya, Rwanda Over Sh149.8bn Tender Scandal

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NAIROBI, Kenya — The World Bank has debarred audit and advisory firms linked to PricewaterhouseCoopers in Kenya and Rwanda for 21 months after uncovering collusive and fraudulent practices tied to a Sh149.8 billion cross-border electricity project.

The sanctions, announced on March 18, 2026, target PwC Kenya, PwC Rwanda and Mauritius-based PwC Associates Africa Ltd, effectively barring them from participating in World Bank-financed projects during the suspension period.

Collusion in a major regional power project

According to the World Bank, the firms engaged in misconduct linked to the Eastern Electricity Highway Project, part of the Eastern Africa Power Integration Program in Ethiopia — a flagship regional initiative designed to facilitate cross-border electricity trade between Ethiopia and Kenya.

Investigations found that in 2019, the firms obtained confidential procurement information from project insiders to improperly influence the award of consultancy contracts, including one involving financial reporting systems for Ethiopian Electric Power.

They were also implicated in attempts to influence a second contract — the Fixed Asset Inventory and Revaluation (FAIR) project for Ethiopian Electric Utility — further deepening the scale of the misconduct.

Misrepresentation and undisclosed partners

Beyond collusion, the World Bank found that during contract execution, PwC Associates Africa misrepresented the qualifications and availability of key experts and failed to fully disclose subcontractors involved in the project.

Such actions, the lender said, undermined the integrity of procurement processes and violated its anti-corruption guidelines.

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Firms admit wrongdoing

In a settlement agreement with the World Bank, the firms admitted to the sanctionable practices, a move that helped reduce the length of their debarment.

They also committed to corrective measures, including internal investigations, disciplinary action against responsible staff, severing ties with implicated subcontractors, and temporarily halting bids for World Bank-funded contracts during negotiations.

Wider implications

The 21-month ban deals a significant blow to the firms’ ability to secure lucrative government and multilateral-funded contracts across East Africa, where World Bank-backed infrastructure projects play a central role in economic development.

The case underscores growing scrutiny by global lenders on procurement integrity in large-scale infrastructure projects, particularly in energy, a sector critical to regional integration and economic growth.

It also highlights the risks facing major consulting firms operating in high-value public projects, as enforcement actions tighten against fraud and collusion in international development financing.

The Eastern Electricity Highway Project remains a cornerstone of efforts to link East African power grids, enabling Ethiopia to export surplus electricity while helping Kenya meet rising energy demand. 

Joseph Muraya
Joseph Muraya
With over a decade in journalism, Joseph Muraya, founder and CEO of Y News, is a respected Communications Consultant and Journalist, formerly with Capital News Kenya. He aims to revolutionize storytelling in Kenya and Africa.

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