World Bank blacklists PwC firms in Kenya, Rwanda and Mauritius over fraud

The World Bank has imposed a 21-month ban on three African subsidiaries of PricewaterhouseCoopers (PwC) over misconduct linked to a major cross-border electricity project between Ethiopia and Kenya.

The sanctioned firms—PwC Kenya, PwC Rwanda and PwC Associates Africa Ltd. (Mauritius)—have been barred from participating in World Bank-funded projects following findings of fraud and collusion tied to the Eastern Electricity Highway Project.

The project is part of the broader Eastern Africa Power Integration Program aimed at boosting regional energy connectivity.

According to the World Bank, the firms improperly obtained confidential procurement information in 2019 to influence the award of consultancy contracts for Ethiopian Electric Power Corporation.

They were also found to have attempted to influence another contract involving Ethiopian Electric Utility.

In addition, one of the entities misrepresented the qualifications, availability, and employment status of key experts, and failed to fully disclose subcontracting arrangements—actions that violate the Bank’s integrity standards.

“The debarment makes PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control ineligible to participate in Bank Group-financed projects and operations,” the lender said in a statement, noting that the sanctions form part of a negotiated settlement in which the firms admitted wrongdoing.

The 21-month ban was reduced from a potentially longer period after the companies acknowledged culpability, cooperated with investigations, and undertook corrective measures.

These include internal disciplinary actions, staff training, and the strengthening of compliance and integrity programmes.

The World Bank added that the firms must fully implement enhanced compliance systems in line with its guidelines before they can be considered for reinstatement.

The Eastern Electricity Highway Project is a key regional initiative designed to enable Ethiopia to export surplus electricity to Kenya, helping to stabilise supply and lower energy costs across the region.

However, the sanctions could have wider implications.

Ethiopia’s ambition to position itself as a regional energy hub may face increased scrutiny from investors and development partners, particularly around procurement transparency and governance.

Any delays in project implementation could also affect expected export revenues.

For Kenya, which is set to benefit from imported power, disruptions or heightened oversight could slow efforts to reduce electricity costs and improve grid stability.

The impact may also extend beyond the three countries directly involved. Rwanda and Mauritius—where the affected firms are based—could face reputational pressure in their professional services sectors, particularly in engagements tied to international development financing.

The World Bank further noted that the sanctions may trigger cross-debarment by other multilateral lenders, potentially limiting the firms’ access to a broader range of publicly funded projects.