The Kenya Tea Development Agency (KTDA) has dismissed allegations that more than KSh 1 billion contributed by tea farmers from Kericho and Bomet counties was diverted to projects in other regions.
In a statement, KTDA described the claims made by some local leaders as “false and misleading,” asserting that the funds were fully utilized on the Settet Power Generation Company’s hydroelectric projects in the two counties.
Settet Power Generation Company Limited was incorporated in October 2010 and is jointly owned by seven tea factory companies, Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset, along with KTDA Power Company Limited. Each shareholder holds an equal 12.5 per cent stake.
The company’s goal is to develop small hydropower plants to supply affordable electricity to tea factories, cutting production costs and boosting farmers’ earnings.
Two key projects are under implementation: the 2.5-megawatt Chemosit Small Hydro Plant and the 2.6-megawatt Kipsonoi Small Hydro Plant. KTDA reported 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 fully used in line with approved budgets.
According to KTDA, KSh 580.8 million went to civil works contractors, KSh 204.8 million to project consultants, KSh 350.8 million for electromechanical equipment, and KSh 71.4 million for land acquisition at Chemosit and Kipsonoi.
In total, KSh 1.208 billion has been spent, with a temporary KSh 174 million deficit covered through internal borrowings. The agency emphasized that “none of the funds have been diverted elsewhere.”
Delays in project completion, KTDA said, were caused by challenges such as postponed debt closure by international financiers, land acquisition issues, and overlaps in transmission wayleaves with Kenya Power.
The Chemosit project secured debt financing of USD 8.6 million from the IFC/Proparco/FMO syndicated facility in September 2024 after delays linked to leadership changes and financing negotiations. The project KTDA says has since made major progress, with civil works 49 per cent complete and electromechanical installations at 78 per cent. It is expected to be completed by May 2026.
Meanwhile, KTDA adds that work also continues at the Kipsonoi project, with land compensation and topographical surveys underway and discussions ongoing with potential financiers.
KTDA reassured farmers that their contributions remain safe and that all expenditures are subjected to external audits and regular reporting to the Regional Power Company Boards, Factory Boards, and shareholders during annual general meetings.
Reaffirming its commitment to transparency and accountability, KTDA said the Settet Power projects are farmer-owned investments aimed at ensuring energy self-sufficiency and operational efficiency for factories in the West of the Rift Valley.
The agency urged leaders to verify information before making public statements that could mislead farmers or undermine community-driven initiatives.
