KTDA Denies Diverting Ksh1 Billion to East Rift Projects
The Kenya Tea Development Agency (KTDA) has dismissed allegations that Ksh1.03 billion from West Rift tea farmers was diverted to projects east of the Rift Valley.
In a statement on Tuesday, October 14, 2025, KTDA called the claims “false and misleading.” The funds were contributed by farmers in Kericho and Bomet for two small hydropower projects.
Funds Used for Chemosit and Kipsonoi Plants
KTDA confirmed the money financed the Chemosit (2.5MW) and Kipsonoi (2.6MW) Small Hydro Plants. The Settet Power Generation Company runs these. Seven tea factories and the KTDA Power Company co-own the company.
Each shareholder—Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, Kapset, and KTDA Power—holds a 12.5% stake.
The agency said the funds covered civil works, consultants, electromechanical equipment, and land acquisition. Total spending so far is Ksh1.208 billion, with a Ksh174 million shortfall covered by internal borrowing.
Projects Aim to Cut Costs, Boost Farmer Earnings
“The plants will supply reliable, affordable electricity to factories,” KTDA stated. This reduces production costs and increases farmers’ bonuses.
The projects follow a 65:35 debt-to-equity financing model, requiring Ksh1.1 billion in equity from shareholders—all sourced from West Rift factories.
Bonus Payments Set for October 15
KTDA also confirmed that they will pay the 2024–25 final bonus on Wednesday, October 15.
Payments will go directly to farmers’ bank accounts, alongside September green leaf proceeds.
This clarification follows recent claims of regional bias in tea bonuses. Agriculture PS Kipronoh Ronoh attributed bonus differences to tea quality and production costs, not discrimination.
