The Kenya Tea Development Agency (KTDA) has strongly denied claims that over KSh 1 billion contributed by tea farmers from Kericho and Bomet counties was diverted to fund projects in other regions.
In a detailed statement, KTDA dismissed the allegations as false and misleading, clarifying that the money was fully utilized for the development of the Settet Power Generation Company’s hydroelectric projects within the two counties. The Settet Power Generation Company Limited was established in October 2010 and is jointly owned by seven tea factory companies—Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset—alongside KTDA Power Company Limited. Each shareholder holds an equal 12.5 percent stake.
The company’s objective is to develop small hydropower plants that will supply affordable and reliable electricity to tea factories, ultimately reducing production costs and increasing farmers’ income. Two major projects are underway: the 2.5-megawatt Chemosit Small Hydro Plant and the 2.6-megawatt Kipsonoi Small Hydro Plant.
KTDA explained that the projects are financed through a 65:35 debt-to-equity structure, requiring a total equity contribution of KSh 1.1 billion. As of October 2025, shareholders had contributed KSh 1.03 billion, all of which has been utilized according to approved budgets. The breakdown shows that KSh 580.8 million was spent on civil works, KSh 204.8 million on consultancy services, KSh 350.8 million on electromechanical equipment, and KSh 71.4 million on land acquisition for both project sites.
In total, KSh 1.208 billion has been spent, with a temporary deficit of KSh 174 million covered through internal borrowings. KTDA emphasized that no funds have been diverted elsewhere.
Delays in project completion were attributed to financing negotiations with international lenders, land acquisition challenges, and transmission wayleave overlaps with Kenya Power. The Chemosit project secured an USD 8.6 million loan facility in September 2024 and is now progressing steadily, with civil works 49 percent complete and electromechanical installation at 78 percent. Completion is expected by May 2026.
KTDA assured farmers that their funds remain safe and that all expenditures undergo external audits and are reported to shareholders during annual meetings. The agency reaffirmed its commitment to transparency and urged local leaders to verify information before issuing public statements that could mislead farmers or disrupt community development efforts.
