- Ksh 1.03 Billion from Farmers Fully Accounted For, Spent on Settet Power Projects in Kericho and Bomet;
The Kenya Tea Development Agency (KTDA) wishes to categorically refute 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.
These claims are false, misleading, and disregard the transparent and verifiable financial framework guiding the implementation of the Settet Power Generation Company’s small hydro projects.
Settet Power Generation Company Limited was incorporated in October 2010 and is owned equally by seven tea factory companies in Kericho and Bomet Counties namely Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, Kapset and KTDA Power Company Limited.
Each of the eight shareholders holds a 12.5% shareholding.
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 projects are under implementation; the Chemosit Small Hydro Plant with a capacity of 2.5 megawatts and the Kipsonoi Small Hydro Plant with a capacity of 2.6 megawatts.
These projects are financed on a 65:35 debt-to-equity ratio, translating to a total equity requirement of KSh 1.1 billion by the shareholders. As of October 2025, shareholders have contributed KSh 1.03 billion, all of which has been fully utilized within the two projects in
line with the approved budgets.
Detailed records show that KSh 580.8 million has been paid to civil works contractors, KSh 204.8 million to project consultants, KSh 350.8 million for electromechanical equipment, and KSh 71.4 million for land acquisition at Chemosit and Kipsonoi.
In total, KSh 1.208 billion has been spent on the projects, with a temporary deficit of KSh 174 million financed through internal borrowings.
These funds have remained within the Settet Power projects and none has been diverted elsewhere.
The challenges experienced in project completion have been mainly due to delayed debt closure by international financiers, land acquisition processes, and transmission wayleave overlaps with Kenya Power.
The Chemosit project’s debt financing of USD 8.6 million from the IFC/Proparco/FMO syndicated facility was successfully finalized in September 2024, after a delay caused by leadership transitions and financing negotiations.
Following this breakthrough, the project has made significant progress, with civil works at 49 percent and electromechanical installations at 78 percent completion.
The contractor has been fully re-mobilized, and the project is expected to be completed by May 2026. Kipsonoi’s project is also progressing, with land compensation and topographical survey works underway as financing discussions advance with prospective lenders.
KTDA wishes to reassure 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 designed to lower electricity costs and enhance their incomes.
All project expenditures are subject to external audits and are regularly reported to respective Regional Power Company Boards, Factory Boards and shareholders during annual general meetings.
KTDA remains fully committed to transparency, accountability, and prudent financial management. The Settet Power projects are farmer-owned investments meant to achieve longterm energy self-sufficiency and operational efficiency for factories in the West of the Rift
Valley.
We therefore urge all leaders to seek accurate information and verify facts before making public statements that may mislead farmers or undermine their own community-driven initiatives
