The World Bank has barred PricewaterhouseCoopers (PwC) subsidiaries in Mauritius, Kenya and Rwanda from participating in projects financed by the Washington-based financier for 21 months, alleging collusion and fraud.
The fraud occurred in connection with a consulting contract for the $1.3 billion Eastern Power Highway Project, a regional initiative linking Ethiopia and Kenya to facilitate cross-border power trade.
“This conduct constitutes collusive and fraudulent conduct under the World Bank Group Consultant Guidelines,” the World Bank said in a statement on Wednesday, highlighting the seriousness of the violation and the lender’s commitment to safeguarding procurement integrity.
PwC fraud and settlement
The investigation revealed that three PwC subsidiaries obtained confidential procurement information from project stakeholders in order to improperly influence the awarding of contracts in 2019. This included consulting services for the implementation of International Financial Reporting Standards at the Ethiopian Electricity Authority and the implementation of the Fixed Asset Inventory and Revaluation (EEU FAIR) agreement at the Ethiopian Electricity Authority. PwC Associates also misrepresented the availability, qualifications, and employment status of key experts and failed to disclose all subconsultants.
As part of the settlement agreement, both companies acknowledged responsibility for these sanctioned actions and agreed to remedial actions, including internal investigations, disciplinary actions, employee compliance training, and the development of enhanced integrity compliance programs.
The Bank noted that the ban is subject to reciprocal enforcement by other multilateral development banks under the 2010 Agreement on Mutual Enforcement of Ban Decisions.
PwC is one of the world’s four largest consulting firms, along with Deloitte, EY, and KPMG. We provide audit, advisory and financial services in Africa and around the world.
The prohibited subsidiaries were involved in large-scale development and infrastructure projects, making this sanction particularly important for the consulting sector and the governance of regional projects.
From March 17, 2026, affected departments and their controlled affiliates will be deprived of access to bank financing projects and operations. Under current arrangements, the ban is scheduled to be lifted on December 16, 2027.
About the $1.3 billion Eastern Power Highway Project
The Eastern Power Highway Project is a key initiative under the Eastern Africa Power Integration Program, which aims to link national power grids and enable large-scale cross-border power trading. Over 1,000 kilometers of high-voltage transmission lines will allow up to 2,000 MW of electricity to flow from Ethiopia to Kenya, reducing Kenya’s energy costs while generating revenue for Ethiopia.
The project was approved by the World Bank in July 2012, and plans for regional grid interconnection date back to 2010. The approximately 437-kilometre Ethiopian section was completed by 2019, and substations for different power systems were completed by 2020. The full interconnection facility was completed in late 2022 and commissioned in 2023, supporting grid stability, regional power market integration, and industrial growth.
Multilateral financing emphasizes the scale of the project. The African Development Bank will contribute $338 million of the total spending of $1.26 billion, with the World Bank and other partners providing the remainder. The project will allow Kenya to import cheap hydropower from Ethiopia, reducing its dependence on expensive local generation, including diesel, and strengthening regional energy security.
“The project was designed to increase Kenya’s electricity supply, reduce costs, and generate revenue for Ethiopia through electricity exports from Ethiopia to Kenya,” the World Bank said.
Impact on local finance and governance
This ban would send a strong signal about accountability in multilateral infrastructure projects. Procurement fraud, with hundreds of millions of dollars at risk, not only jeopardizes project outcomes but also threatens investor confidence in infrastructure finance in Africa.
By taking action against PwC, the World Bank is underscoring the importance of transparency, integrity and compliance in high-value contracts. For East Africa, this is a warning to other consultancies. Governance failures have serious financial, operational and reputational implications.
As Eastern Power Highway continues to consolidate the region’s electricity markets, this case highlights the critical role that ethical consulting can play in ensuring that large-scale investments result in tangible development results.
