NAIROBI, Kenya, Oct 15 – The Kenya Tea Development Agency (KTDA) has dismissed allegations by some leaders from Kericho and Bomet Counties claiming that over Sh1 billion contributed by farmers from the West of the Rift Valley was diverted to projects in the East.
KTDA described the accusations as false and misleading, stating that all funds contributed by farmers have been fully accounted for and utilized on the Settet Power Generation Company’s small hydro projects in Kericho and Bomet.
Settet Power Generation Company Limited, incorporated in October 2010, is jointly owned by seven tea factory companies in Kericho and Bomet — Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — alongside KTDA Power Company Limited, with each holding a 12.5 percent stake.
The firm was established to develop small hydro power plants to provide reliable and affordable electricity to tea factories, thereby reducing production costs and improving farmers’ earnings.
Currently, two projects are under implementation in the region, including a 2.5 megawatts Chemosit Small Hydro Plant and 2.6 megawatts Kipsonoi Small Hydro Plant.
The projects are being financed on a 65:35 debt-to-equity ratio, requiring a total equity contribution of Sh1.1 billion from shareholders.
As of October 2025, farmers had contributed Sh1.03 billion, with total project expenditure standing at Sh1.208 billion, all of which KTDA says has been fully utilized within the two projects in line with approved budgets.
KTDA assured farmers that their funds are safe and directed solely toward lowering electricity costs and boosting earnings.
“All project expenditures are subject to external audits and are regularly reported to Regional Power Company Boards, Factory Boards, and shareholders during Annual General Meetings,” KTDA said.
The agency attributed project delays to financing, administrative, and logistical challenges, noting that these issues have now been resolved.
The Chemosit project is expected to be completed by May 2026, while the Kipsonoi project is progressing with land compensation and survey works underway as financing talks continue.
