James Ayugi on the spot after World Bank bans eCitizen firm Webmasters Kenya for five years

This story has significance for readers across Kenya and beyond.

The World Bank has debarred Webmasters Kenya Ltd, the company known for creating the eCitizen platform, and its CEO, Mr James Ayugi, from conducting business with the institution for five years following a project in Somalia that was executed in a questionable manner.

According to a debarment notice issued in June 2026, the World Bank said the CEO and his company would not be able to conduct any business with it for five years, a finding that the firm has described as too harsh for an “administrative lapse”.

“Pursuant to Sanctions Board Decision No. 147 issued in Sanctions Case No. 790, the Sanctions Board imposes a sanction of debarment with conditional release for a minimum period of (5) years on both the firm Webmasters Kenya Ltd., and the individual Mr James Ayugi,” said the notice.

The trouble for Webmasters Kenya stems from its involvement in two World Bank-backed digitisation programmes in Somalia, the Score Project, which ran from 2016 to 2020, and the Scaled-Up Project, launched in 2019.

Both initiatives aimed to help the Somali Ministry of Commerce and Industry build a Single Business Registration System to modernise business licensing nationwide.

The first major finding by the World Bank’s Integrity Vice Presidency revolves around misrepresentations during the procurement process for the Scaled-Up Contract.

Investigators established that Webmasters Kenya listed two key experts in its proposals and contract documents, attaching their CVs along with signed certifications of availability.

Mr Ayugi signed off on these submissions and verbally reaffirmed during contract negotiations that the experts were ready to work, the World Bank said.

However, during a 2022 inquiry, both experts stated that they were completely unaware of their inclusion, had never authorised the use of their CVs, and never took part in the project.

“The record here supports a finding that the Respondent Individual acted at least recklessly by affirming the Key Staff Members' availability to the Scaled-Up PIU based on an admitted assumption that they would be available,” said part of the World Bank Sanctions Board decision.

The board also ruled on the sanction following obstructive practices during a subsequent audit into both projects.

When investigators issued an Audit Letter in November 2022 requesting essential accounting records, sub-contractor details and invoices, Webmasters Kenya failed to produce the vast majority of the required documents.

Despite ten reminders and multiple extensions, the firm only provided high-level work plans and deliverables.

“The Sanctions Board concludes that it is more likely than not that Mr James Ayugi engaged in conduct to materially impede the exercise of the Bank's inspection and audit rights by failing to meaningfully comply with documentary requests in the context of an audit,” said the World Bank.

While imposing the five-year ban, the World Bank issued a stern warning regarding the scope of the penalty.

The institution said that the debarment will be communicated to other global financial lenders, including the African Development Bank, under mutual cross-debarment agreements.

Furthermore, the World Bank emphasised that the five-year period is merely a minimum, and neither the firm nor its CEO will be allowed to resume business with the institution until they fully implement a World Bank-approved corporate integrity compliance programme.

In response to the findings, Webmasters Kenya and Mr Ayugi defended their record, framing the World Bank’s decision as a harsh penalty for administrative gaps rather than a reflection of poor work quality or deliberate wrongdoing.

The firm explained that during the contract delivery in Somalia, certain proposed team members moved on to other opportunities, while others were brought on board directly as employees.

“Where we fell short was in how we handled that transition administratively, we did not formally notify the World Bank of the resourcing changes as required under the contract's terms,” said the CEO on his social platforms.

The company maintained that it acted in good faith, believing the experts would participate, characterising the issue as an administrative oversight rather than a deliberate attempt to mislead.

Regarding the audit failure, Webmasters Kenya pushed back against the obstruction claims, stating that it had provided all available records and acted without any intent to mislead. The firm attributed its inability to produce every requested document to ordinary record-keeping limitations associated with running a growing enterprise.

The company emphasised that despite the administrative reporting lapses, the core objective of the project was successfully achieved.

Webmasters Kenya highlighted that its team conducted comprehensive readiness assessments across Puntland, Jubaland, Southwest State, Hirshabelle, Galmudug and Banadir.

They say the work culminated in the successful completion of the Single Business Registration System, which was then fully handed over to a local Somali company to ensure long-term, in-country sustainability.

Reached by phone for comment regarding the World Bank’s ruling, Mr Ayugi took a philosophical stance, accepting the outcome as an invaluable lesson for growing technology firms navigating corporate governance.

“It makes us bigger because we will not just be looking at World Bank-funded projects. We will be seeking solutions to problems facing citizens directly. No one is talking about the work that we did out there and the challenges faced on the ground, as these auditors are never on the ground,” Mr James Ayugi told the Nation in a telephone interview.

“We accept it and we believe it is the best chance to grow and learn. Every single business has a compliance issue, even government does. Mostly startups do not have the income to source all the professionals needed to ensure they comply. But we are always learning. I take this positively and it is a chance for young companies to learn, to start looking at compliance and financing very early in their business processes.”

He added that what mattered most to him was that businesses in Somalia can now register within three days, noting that the setback does not dim the fact that thousands of business owners now acknowledge the impact of the system his firm built.

While the World Bank ruling imposes a clear five-year limit on international tenders, the firm maintains that the operational lessons gained will shape its next chapter in enterprise technology.

Reporting originally appeared via Nation Africa. Read the full source for additional context.