The World Bank has barred subsidiaries of PricewaterhouseCoopers (PwC) in Mauritius, Kenya, and Rwanda from participating in any projects financed by the Washington-based lender for 21 months, after finding them guilty of collusive and fraudulent practices.
The misconduct occurred in connection with consultancy contracts on the $1.3 billion Eastern Electricity Highway Project, a regional initiative linking Ethiopia and Kenya to boost cross-border electricity trade.
“This conduct constitutes collusive and fraudulent practices under the Bank Group Consultant Guidelines,” the World Bank said in a statement on Wednesday, highlighting the seriousness of the violations and the lender’s commitment to upholding procurement integrity.
PwC’s misconduct and the settlement
The investigation revealed that the three PwC subsidiaries obtained confidential procurement information from project officials to improperly influence contract awards in 2019. These included consultancy services for implementing International Financial Reporting Standards at the Ethiopian Electric Power Corporation and the Fixed Asset Inventory and Revaluation (EEU FAIR) contract at the Ethiopian Electric Utility. PwC Associates also misrepresented the availability, qualifications, and employment status of key experts, and failed to disclose all subconsultants.
As part of a settlement agreement, the firms admitted culpability for these sanctionable practices and have agreed to remedial measures including internal investigations, disciplinary actions, staff compliance training, and development of an enhanced integrity compliance programme.
The Bank noted that the ban qualifies for cross-enforcement by other multilateral development banks under the 2010 Agreement for Mutual Enforcement of Debarment Decisions.
PwC is one of the Big Four global consultancy firms, alongside Deloitte, EY, and KPMG. It provides audit, advisory, and financial services across Africa and the world.
The barred subsidiaries were involved in major development and infrastructure projects, making this sanction particularly significant for the consulting sector and regional project governance.
Effective March 17, 2026, the affected units and the affiliates they control will be stripped of their access to Bank-financed projects and operations. Under the current arrangement, the ban will be lifted on December 16, 2027.
About the $1.3bn Eastern Electricity Highway Project
The Eastern Electricity Highway Project is a key initiative under the Eastern Africa Power Integration Program, designed to link national electricity grids and enable large-scale cross-border power trade. The high-voltage line, spanning more than 1,000 kilometres, allows up to 2,000 MW of electricity to flow from Ethiopia to Kenya, reducing energy costs in Kenya while generating revenue for Ethiopia.
The project was approved by the World Bank in July 2012, with planning for regional grid interconnection dating back to 2010. The Ethiopian section which spans about 437 kilometers was completed by 2019, and converter stations handling differences in power systems were finalised by 2020. The full interconnector was completed in late 2022 and became operational in 2023, supporting grid stability, regional electricity market integration, and industrial growth.
Multilateral financing underscores the scale of the project. The African Development Bank contributed $338 million toward the $1.26 billion total expenditure, with the World Bank and other partners providing the remainder. By enabling Kenya to import cheaper hydropower from Ethiopia, the project reduces reliance on expensive local generation, including diesel, and strengthens regional energy security.
“The project was designed to increase the volume and reduce the cost of electricity supply in Kenya; and to provide revenues to Ethiopia through the export of electricity from Ethiopia to Kenya, the World Bank said.
Implications for regional finance and governance
The debarment sends a strong signal about accountability in multilateral infrastructure projects. With hundreds of millions of dollars at stake, procurement misconduct not only jeopardises project outcomes but also threatens investor confidence in African infrastructure finance.
By taking action against PwC, the World Bank is reinforcing the importance of transparency, integrity, and compliance in high-value contracts. For East Africa, this serves as a warning to other consultancies: lapses in governance have serious financial, operational, and reputational consequences.
As the Eastern Electricity Highway continues to integrate regional power markets, the case underscores the critical role of ethical consultancy practices in ensuring that large-scale investments translate into tangible development outcomes.
