KTDA Defends Use Of KSh1 Billion Farmers’ Funds In Bomet, Kericho Power Projects
By MKT Reporter
The Kenya Tea Development Agency (KTDA) moved to dispel claims that over KSh 1 billion raised from tea farmers in Kericho and Bomet counties was diverted to projects in other regions.
The agency insisted that the money, contributed through the Settet Power Generation Company, has been fully utilized on two small hydro power projects in the South Rift; Chemosit and Kipsonoi.
In a statement issued on Tuesday, KTDA termed the allegations made by some leaders from the region as “false and misleading,” saying all the funds are traceable and have been spent according to approved budgets.
“These claims disregard the transparent and verifiable financial framework guiding the implementation of the Settet Power Generation Company’s projects,” KTDA said.
Settet Power Generation Company Limited was set up in 2010 by seven tea factories; Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — together with KTDA Power Company Limited. Each of the eight shareholders owns a 12.5 per cent stake.
The firm’s main goal is to generate reliable and affordable electricity for the factories, helping to cut production costs and boost farmers’ earnings.
KTDA said the shareholders have so far raised KSh 1.03 billion, which has all been injected into the two ongoing projects. A total of KSh 1.208 billion has been spent so far — KSh 580.8 million on civil works, KSh 204.8 million on consultancy services, KSh 350.8 million on electromechanical equipment, and KSh 71.4 million on land purchases.
The agency added that a temporary KSh 174 million shortfall has been covered through internal borrowings, and none of the funds have been diverted elsewhere.
The Chemosit hydro project, which has a capacity of 2.5 megawatts, is almost halfway complete after securing an USD 8.6 million loan from IFC, Proparco, and FMO in 2024. Civil works are 49 per cent done, and electromechanical installations are at 78 per cent. The project is expected to be completed by May 2026.
The Kipsonoi project, with a 2.6-megawatt capacity, is also progressing, with land acquisition and survey work underway as talks with potential financiers continue.
KTDA acknowledged that both projects had faced delays due to challenges in securing financing, land acquisition, and power line wayleave overlaps with Kenya Power.
“Farmers’ contributions are safe, properly utilized, and directed solely toward projects designed to lower electricity costs and enhance their incomes,” KTDA assured.
The agency urged political leaders to verify information before making public statements that could mislead farmers or undermine community-owned investments.
The two Settet Power projects are part of KTDA’s broader plan to help tea factories cut energy costs and improve returns for thousands of smallholder farmers across the country.
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