NAIROBI, Kenya — The World Bank has barred James Ayugi, the founder and chief executive officer of Webmasters Kenya Ltd, from participating in World Bank-financed projects for at least five years after finding him and his company liable for fraudulent and obstructive practices in Somalia.
The sanction follows a decision by the World Bank Sanctions Board issued on June 8, 2026, concerning two World Bank-funded projects in Somalia.
Ayugi and Webmasters were found to have engaged in practices involving the misrepresentation of key personnel and obstruction of an audit.
World Bank finds experts were misrepresented
The case involved the Somali Core Economic Institutions and Opportunities Project and the Somalia Capacity Advancement, Livelihoods and Entrepreneurship through Digital Uplift Project.
According to the sanctions decision, Webmasters and Ayugi represented that two experts identified as key personnel in a technical proposal and subsequent contract were available to work on the project.
The two experts, however, were allegedly unaware that they had been listed for the assignment.
The World Bank found that Ayugi signed certifications confirming the experts’ availability and subsequently reaffirmed their availability during contract negotiations.
The Sanctions Board concluded that Ayugi had at least recklessly misled relevant authorities in order to secure the contract.
Company accused of obstructing World Bank audit
The World Bank also found Webmasters responsible for obstructive conduct during an audit of the projects.
The company repeatedly delayed responding to requests for documents and failed to provide most of the records requested by the Bank.
Webmasters disputed the allegations, arguing that the inclusion of the two experts was an innocent error rather than deliberate misrepresentation.
The company also maintained that its failure to provide the requested documents was attributable to ordinary limitations in its record-keeping processes.
The World Bank rejected the explanation.
The Bank noted that Webmasters had at least 100 employees and had previously worked on World Bank-financed contracts, including projects worth nearly $1 million between 2018 and 2020.
The Sanctions Board therefore determined that the company’s explanation did not adequately account for the conduct identified during the proceedings.
Five-year debarment imposed
The sanction imposed on Ayugi and Webmasters is a five-year debarment with conditional release.
This means that after completing the minimum five-year period, the company and Ayugi will not automatically regain eligibility to participate in World Bank-financed projects.
They must first undertake appropriate remedial measures and establish a credible integrity compliance programme.
The sanction also extends to affiliates directly or indirectly controlled by Ayugi or Webmasters.
The World Bank will additionally notify other multilateral development banks participating in its cross-debarment arrangement.
Those institutions may then consider whether to enforce the sanction under their respective rules.
What the sanction means for Ayugi and Webmasters
The debarment prevents Ayugi, Webmasters Kenya Ltd and covered affiliates from participating in World Bank-financed projects during the sanction period, subject to the conditions set out in the decision.
The ruling does not amount to a general prohibition on the company’s operations outside World Bank-financed projects.
However, it represents a significant integrity finding against the company and its chief executive, particularly because the sanction arose from conduct involving public development financing.
The conditional-release requirement also places emphasis on reforms within the company before it can regain access to World Bank-funded procurement opportunities.
