The Kenya Tea Development Agency (KTDA) has dismissed claims that over KSh1 billion contributed by tea farmers in Kericho and Bomet counties was diverted to projects outside the West of the Rift Valley.
In a statement released on Tuesday, October 14, the agency termed the allegations being circulated by some local leaders as false and misleading.
The leaders had accused KTDA of diverting funds meant for the construction of two small hydropower plants to other projects in the eastern region, allegedly without the farmers’ knowledge or consent.
KTDA clarified that the funds are being used for their intended purpose to develop two small hydropower projects, the Chemosit Small Hydro Plant and the Kipsonoi Small Hydro Plant under the Settet Power Generation Company Limited.
According to the agency, Settet Power Generation Company was incorporated in October 2010 and is jointly owned by seven tea factories in Kericho and Bomet Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset along with KTDA Power Company Limited. Each of the eight shareholders holds an equal 12.5 percent stake.
“The company was set up to develop small hydropower plants that supply affordable and reliable electricity to factories, lowering production costs and improving farmers’ earnings,” KTDA said.
The agency added that the funds have gone into paying civil works contractors, consultants, and purchasing electromechanical equipment, as well as acquiring land for the projects.
So far, KTDA said, KSh1.208 billion has been spent on the two hydropower plants, with an additional KSh174 millionsourced through internal borrowing to fill the funding gap.
The ongoing projects Chemosit (2.5 megawatts) and Kipsonoi (2.6 megawatts) are being financed through a 65:35 debt-to-equity ratio, with shareholders contributing a total of KSh1.1 billion in equity.
The clarification comes just days after the Ministry of Agriculture also moved to dispel claims of discrimination in tea bonus payments between the East and West Rift regions.
Agriculture Principal Secretary Kipronoh Ronoh explained that the difference in bonus payouts is due to variations in tea quality and production costs between the two regions not bias.
Meanwhile, KTDA has confirmed that farmers will receive their final bonus payments by Wednesday, October 15, 2025, covering the 2024/2025 financial year.
The payments will be deposited directly into farmers’ bank accounts, alongside proceeds from green leaf deliveries made in September.