KTDA Denies Claims of Sh1.03bn Power Project Embezzlement


The Kenya Tea Development Agency (KTDA) has rejected allegations made by certain leaders from Kericho and Bomet Counties, who assert that over Sh1 billion contributed by farmers from the West of the Rift Valley was misappropriated for projects in the East.

  Click here to connect with us on WhatsApp KTDA characterized these claims as unfounded and misleading, emphasizing that all funds contributed by farmers have been thoroughly accounted for and allocated to the Settet Power Generation Company’s small hydro projects in Kericho and Bomet. Settet Power Generation Company Limited, established in October 2010, is co-owned by seven tea factory companies in Kericho and Bomet — Kapkatet, Litein, Tegat, Momul, Kapkoros, Mogogosiek, and Kapset — along with KTDA Power Company Limited, with each entity holding a 12.5 percent share. The company was formed to create small hydro power plants that deliver reliable and affordable electricity to tea factories, thus lowering production costs and enhancing farmers’ profits. At present, two projects are underway in the region, including a 2.5 megawatts Chemosit Small Hydro Plant and a 2.6 megawatts Kipsonoi Small Hydro Plant. These projects are being financed through a 65:35 debt-to-equity ratio, necessitating a total equity contribution of Sh1.1 billion from shareholders. As of October 2025, farmers had contributed Sh1.03 billion, with the total project expenditure amounting to Sh1.208 billion, all of which KTDA asserts has been completely utilized within the two projects according to approved budgets. KTDA reassured farmers that their funds are secure and are exclusively aimed at reducing electricity costs and enhancing earnings. "All project expenditures are subject to external audits and are routinely reported to Regional Power Company Boards, Factory Boards, and shareholders during Annual General Meetings," KTDA stated. The agency attributed delays in the projects to challenges related to financing, administration, and logistics, indicating that these issues have now been resolved.

Comments

Post a Comment

Popular posts from this blog

Pressure is increasing on the Teachers Service Commission (TSC) to relocate Principal Hellen Mabese Luhangala of Tengecha Girls High School

Image
As the third term approaches its conclusion, stakeholders at Tengecha Girls High School in Kericho County are fervently urging the TSC to facilitate the transfer of Principal Hellen Mabese Luhangala.   In a conversation with Citizen Daily News, conducted under strict anonymity due to concerns of retaliation, parents and certain members of the local community assert that Hellen has remained in her position for an extended period without any visible development projects to demonstrate her leadership. The local community is now requesting that the TSC appoint a new principal in January, ideally someone who is a “daughter of the soil.” They allege that she has become adept at leading through authoritarian methods, coercion, intimidation, and threats against those who oppose her alleged involvement in corrupt practices, which have resulted in the misappropriation of public funds during her tenure. Furthermore, it is reported that she employs intimidation tactics against members of th...
Read more

The Auditor General has revealed financial mismanagement at St. Michael Kabaa, prompting parents to urge the EACC to investigate, apprehend, and prosecute Paul Mwangele

Image
The report uncovers significant corruption and exploitation of parents through unlawful levies. The embezzlement of public funds occurred during Mwangele's leadership, during which parents accused him of acting independently, while those expressing differing views were coerced, threatened, and intimidated into accepting illegal practices. Parents are now requesting that the EACC conduct a more thorough investigation to uncover the loss and theft of public funds. Auditor Gener Nancy Gathungu has raised concerns over unsupported payments for tuition and boarding school payments amounting to millions which were not supported by any purchase orders, request for quotations and professional opinions. She said many schools failed to provide evidence to support how they spent the funds. According to the report, despite some schools receiving revenues from Parents Association, the revenue was not deposited to the school account. IRREGULAR TRANSFER OF DEVELOPMENT FUNDS TO SCHOOL FUND ACCOUNT...
Read more

The financial mismanagement at ENOOMATASIANI GIRLS SECONDARY SCHOOL has been brought to light.

Image
  The most recent report from the Auditor General for the fiscal year ending June 30, 2024, has uncovered mismanagement at Enoomatasiani High School under the administration of Principal Tabitha Mbabu (TSC No. 224359). There are calls for her transfer over mismanagement and not very impressive academic excellence under her leadership. As per the report, the statement of receipts and payments indicates that the school's fund income from parents' contributions amounts to Kshs. 89,627,445, as detailed in Note 4 of the financial statements. An examination of the school's fee structure during the review period revealed that the school fees were raised beyond the limits set by the Ministry of Education (MOE), resulting in an unauthorized increase in annual fees of Kshs. 15,000 for form one students and Kshs. 18,000 for students in other classes. This action contravenes Regulation 44 of the Basic Education Regulations, 2015, which stipulates that no public school or instit...
Read more