President William Ruto has put a one-month deadline on an investigation into debts weighing down tea factories in Bomet, saying the government will only offer help after establishing that the loans are genuine.
Ruto instructed Agriculture Principal Secretary Paul Ronoh to start the audit immediately and establish the nature of the liabilities before the State commits public funds to clearing any part of the debts.
“Hapa tuko na factories iko na madeni kubwa kubwa. Nataka huyu PS (Rono) wangu ukuje hapa, nataka hiyo madeni ichunguzwe. Nikipata iko sawa, mimi nitasaidia nyinyi kulipa sehemu ya hiyo deni,” Ruto said.
The directive followed a plea by Konoin MP Brighton Yegon, who asked the President to intervene in the financial problems affecting tea factories and farmers in the region.
Speaking on Friday during his development tour of Bomet County, Ruto ordered Ronoh to complete the exercise and give him the findings within one month so that he can determine the next step.
“PS, weka audit mara moja. Nataka nijue in the next one month ndiyo nipange,” he said.
The President said the government had previously dealt with a similar problem in the sugar industry, where it was faced with large debts whose legitimacy had not been properly confirmed.
He said the tea factory audit would separate genuine loans from liabilities arising from fraudulent or irregular arrangements, making it possible for the government to know which debts can be supported.
"Lakini siwezi lipa deni yenye mtu alichukua (But, I am not going to pay a debt which somebody took)," Ruto said.
Ruto said factories whose debts are confirmed through the audit could receive government assistance in the form of grants to help lower their financial burden.
“Tunataka kuchunguza, tukipata iko sawa sawa, mimi nitawasaidia grant ya serikali kupunguza hiyo madeni,” he said.
Yegon had told the President that farmers were bearing the effects of huge loans taken on by their factories, making it difficult for the facilities to operate effectively and limiting the gains farmers receive from their tea.
The MP pointed to Kapset Tea Factory, which he said has accumulated a Sh1.7 billion loan, and Mogogosiek Tea Factory, which he said owes Sh2 billion.
“Tunataka, Your Excellency, usaidie hawa wakulima wa majani chai, wameumia sana,” Yegon pleaded.
Ruto said dealing with legitimate debts would reduce pressure on the factories and create better conditions for farmers to benefit from the tea they produce.
The President’s intervention came as he officially commissioned the upgrading to bitumen standards of the Kapkatet-Boito-Kapset-Kaptien-Kapleleito-Kiptenden-Kapkoros-Kiplelji-Kapsimotwa-Kapkwen-Olbutyo-Siongiroi Road.
The road is expected to strengthen links across the tea-growing area, improve the movement of farm produce and make it easier for farmers to access markets.
Ruto’s order places the verification of the tea factories’ debts ahead of any government bailout, with financial support tied to loans that are found to be genuine.