The Lower Eastern Times Opening The Third Eye
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The Kenya Tea Development Agency (KTDA) has rejected claims by leaders from Kericho and Bomet alleging that more than Sh1 billion contributed by farmers from the western tea-growing region was diverted to projects in eastern Kenya.
In a statement, KTDA termed the allegations false and misleading, insisting that all farmer contributions have been properly accounted for and invested in the Settet Power Generation Company’s small hydro projects in Kericho and Bomet counties.
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Settet Power Generation Company Limited, established in 2010, is jointly owned by seven tea factories — Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — together with KTDA Power Company Limited, each holding a 12.5% stake. The company was formed to develop small hydro plants to supply affordable and reliable power to tea factories, lowering production costs and improving farmers’ returns.
Currently, two hydro projects — the 2.5MW Chemosit and 2.6MW Kipsonoi plants — are under construction. The projects are being funded through a 65:35 debt-to-equity structure, with shareholders expected to contribute Sh1.1 billion in equity.
By October 2025, farmers had already raised Sh1.03 billion, and the total expenditure reached Sh1.208 billion, which KTDA said has been fully used for the two projects according to approved budgets.
KTDA reassured farmers that their contributions are safe and directed solely toward lowering energy costs and boosting income.
“All project funds are audited externally and presented to the respective boards and shareholders during AGMs,” the agency said.
Project delays, KTDA added, were caused by financing, administrative, and logistical issues, which have since been resolved. The Chemosit plant is expected to be completed by May 2026, while progress continues at Kipsonoi, where land compensation and survey work are ongoing as financing arrangements are finalized.
