KTDA dismisses claims of funds diversion from West to East Rift Valley

The Kenya Tea Development Agency (KTDA) has refuted claims made by a section of leaders from Kericho and Bomet counties alleging that over one billion shillings contributed by farmers from the West of the Rift Valley was diverted to the East of the Rift Valley.

In a statement issued by the agency, the tea giant termed the claims as false and misleading, saying they ignore the transparent and verifiable financial framework guiding the implementation of Settet Power Generation Company’s small hydro projects.

The power generation company, incorporated in October 2010, is jointly owned by seven tea factory companies in Kericho and Bomet counties — namely Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — together with KTDA Power Company Limited. Each of the eight shareholders holds an equal 12.5% stake.

Settet Power Generation Company was established to develop small hydro power plants to supply reliable and affordable electricity to the factories, thereby reducing production costs and improving farmers’ earnings.

Currently, two hydro projects are under implementation — the Chemosit Small Hydro Plant, with a capacity of 2.5 megawatts, and the Kipsonoi Small Hydro Plant, with a capacity of 2.6 megawatts — located in Bomet and Kericho counties.

These projects are financed on a 65:35 debt-to-equity ratio, requiring a total equity contribution of Ksh 1.1 billion from shareholders. As of October 2025, shareholders have contributed Ksh 1.03 billion against a total project expenditure of Ksh 1.208 billion, all of which has been fully utilized within the two projects in line with the approved budgets.

KTDA has reassured farmers in Kericho, Bomet, and the entire West of the Rift Valley that their contributions are safe, properly utilized, and directed solely toward the intended projects aimed at lowering electricity costs and enhancing farmer incomes.

According to the agency, all project expenditures are subject to external audits and are regularly reported to the respective Regional Power Company Boards, Factory Boards, and shareholders during Annual General Meetings.

The statement further noted that the challenges experienced in completing the projects mainly arose from financing, administrative, and logistical issues — all of which have since been resolved. The contractor has been fully re-mobilized, and the Chemosit project is expected to be completed by May 2026.

The Kipsonoi project is also progressing, with land compensation and topographical survey works underway as financing discussions advance with prospective lenders.

KTDA reaffirmed its commitment to transparency, accountability, and prudent financial management, emphasizing that the Settet Power projects are farmer-owned investments designed to achieve long-term energy self-sufficiency and operational efficiency for factories in the West of the Rift Valley.

The agency has therefore urged all leaders to seek accurate information and verify facts before making public statements that may cause panic and confusion among farmers.