KTDA Refutes Allegations of Misappropriating Over KSh1 Billion in Farmers’ Contributions
By Shadrack Mutai | Nairobi, KENYA,
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 dispatched by the agency, the tea giant has termed the claims as false, misleading, and ignore the transparent and verifiable financial framework guiding the implementation of Settet Power Generation Company’s small hydro projects. The power generation company was incorporated on October 2010 and is equally owned by seven tea factory companies in Kericho and Bomet Counties which include Kapkatet, Litein,Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — along with KTDA Power Company Limited. Each of the eight shareholders holds a 12.5% stake.
The 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 which include Chemosit Small Hydro Plant, with a capacity of 2.5 megawatts. The Kipsonoi Small Hydro Plant, with a capacity of 2.6 megawatts and under implementation 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 projects intended to lower electricity costs and enhance farmer incomes. 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.
Further the statement says that challenges experienced in completing the projects have mainly arisen 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 on course, with land compensation and topographical
survey works underway, as financing discussions advance with prospective lenders.
KTDA says that it is committed to transparency, accountability, and prudent financial management. The Settet Power projects are farmer-owned investments aimed at achieving 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.
