The Kenya Tea Development Agency (KTDA) has strongly denied allegations that over Sh1 billion contributed by tea farmers from Kericho and Bomet counties was diverted to projects in other regions. In a statement released on Tuesday, the agency described the claims as false, misleading, and contrary to verified financial records.
KTDA clarified that all funds raised for the Settet Power Generation Company Limited have been fully accounted for and used for their intended purpose. Settet Power Generation Company, incorporated in October 2010, is jointly owned by seven tea factories Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset alongside KTDA Power Company Limited, each holding a 12.5% stake.
The company was formed to develop small hydropower plants that provide affordable electricity to tea factories, lowering production costs and boosting farmers’ earnings. Currently, two key projects are in progress: the 2.5-megawatt Chemosit Small Hydro Plant and the 2.6-megawatt Kipsonoi Small Hydro Plant.
KTDA stated that farmers and factory shareholders had contributed Sh1.03 billion of the total Sh1.1 billion required for both projects. The funds were spent on civil works (Sh580.8 million), consultancy (Sh204.8 million), electromechanical equipment (Sh350.8 million), and land acquisition (Sh71.4 million). A temporary deficit of Sh174 million was covered through internal borrowing.
The agency attributed project delays to challenges such as delayed financing from international lenders, complex land acquisition, and transmission wayleave issues with Kenya Power. Financing for the Chemosit project, valued at USD 8.6 million, was finalized in September 2024, allowing significant progress.
KTDA reassured farmers that their investments remain secure and are audited externally. “All expenditures are transparent, accountable, and directed toward improving energy efficiency and farmer incomes,” the agency said, urging political leaders to verify facts before making misleading public statements.
