President William Ruto with Koisagat Tea group of companies chairman David Langat. PHOTO/UGC.
By PATRICK MAYOYO
Employees Koisagat Tea Factory in Nandi County have appealed to President William Ruto, to come to the rescue and save their factory from the auctioneers hammer.
The Koisagat Tea group of companies based in Nandi Hills in owned by business magnate, Mr David Langat, said to be President Ruto’s close friend.
However, on Monday, more than 1,500 employees of the Koisagat Tea group of factories woke up to rude shock when they learned through the media that their employer’s factory was o be auctioned over a Sh 1.9 billion debt.
“We are appealing to President Ruto to come to our rescue because if our tea factory is going to be auctioned we are going to become destitute,” one employee at the factory, Reuben Chesire said.
The decision by auctioneers to advertise the auctioning of Mr Langat’s tea estates who is a close confidant of President Ruto is viewed as a blow to the businessman and his workers.
Mr Langat is remembered for campaigning and heavily funding former President Uhuru Kenyatta and his then running mate and current President Ruto during the 2013 and 2017 elections.
Mr Langat is also known to have been President Ruto’s foot soldier during the 2022 general election and a key player in presidential polls fundraising.
“President Ruto should come to the rescue of his friend now that he is facing financial difficulties and rescue our jobs,” Mr Chesire said.
A source told this publication that the auctioneer hope to sell the expansive tea estate at Sh1.9 billion in the forced sale to be held on August 1 at the auctioneer’s offices in Nairobi’s Westlands area.
The Koisagat Tea group of companies comprises land measuring about 1,342 acres, plants and machinery. The auction notice in one of the local dailies stated that the site of the factory is developed with an exclusive tea zone for export-oriented commercial tea cultivation.
Koisagat Tea group of companies chairman David Langat. PHOTO/UGC
The estate also has 2.47 million tea bushes occupying 958.75 acres, 100,942 eucalyptus trees and 2,223 cypress trees. “Woodlots are periodically harvested to provide wood fuel to the tea processing,” the notice stated.
Other portions of the tea estate are under residential use (managerial houses and labour camps). The tea estate also has two schools — Francis Kibet Memorial School and Koisagat Primary School – a factory section, a factory building, a storey administration building, estates and partnerships offices, a fuel station, a main store, factory workshop, a carpentry workshop and weighbridge office.
There is also a chemicals store, factory washrooms, labour camps with shops, a social hall, managerial houses, guest houses, a swimming pool and a chairman’s residence.
“All intending purchasers are requested to view the property and verify the details as these are not warranted by the auctioneers. A deposit of 10% for each property should be paid in cash or banker’s cheque at the fall of the hammer,” he auction notice stated.
The notice added that balance will thereafter be payable within ninety (90) days for each property to the chargee’s advocates a bidding deposit of Kshs 10 million for each property is mandatory by way of banker’s cheque(s.
“Please note that failure to pay the balance by the confirmed purchaser will result in forfeiture of all deposits paid,” the notice says.
The notice adds that; “All the aforementioned property details of encumbrances including names addresses e.t.c. together with user and any other restrictions plus rates/rents payable will be made available on request at our offices. Sale of the above property will be subject to reserve prices and land board consent if applicable.” The sale will be conducted on September 10, 2024 in Westlands.
Mr Langat popularly known as DL, is among the businessmen from North Rift that backed Ruto’s 2022 presidential bid but seem to have fallen out of favour with the president and their business empires are collapsing.
He joins many other businessmen from the region business fortunes are dwindling in spite of their closeness to the head of state. Others include Zedekiah Buzeki and former Kesses MP and owner of Mediheal group of hospitals that also under threat of auction, Swarup Mishra.
Mr Langat’s financial troubles are said to be linked to multi-billion tender business at the Kenya Ports Authority (KPA) where some powerful individuals in government have been frustrating companies linked to him.