Ruto Orders Audit of Tea Factory Debts, Promises Support for Verified Loans

Date:

BOMET, Kenya — President William Ruto has directed the government to audit debts owed by tea factories in Bomet County and determine which liabilities are legitimate before considering financial support.

Ruto instructed Agriculture Principal Secretary Paul Ronoh to immediately begin the audit and submit a report within one month, saying the government would only intervene in debts that are found to be genuine.

The President said the government would not assume liabilities arising from fraudulent or irregular borrowing arrangements.

“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.

PS Given One Month to Complete Audit

Ruto issued the directive on Friday during his development tour of Bomet County after Konoin MP Brighton Yegon appealed for government intervention over the financial difficulties facing tea factories in the region.

The President directed Ronoh to ensure the audit begins immediately and that he receives the findings within a month.

“PS, weka audit mara moja. Nataka nijue in the next one month ndiyo nipange,” he said.

Ruto said the audit would allow the government to establish the nature and legitimacy of the loans before deciding how much support can be provided.

He warned that public funds would not be used to settle debts whose origins cannot be verified.

“Lakini siwezi lipa deni yenye mtu alichukua.”

Ruto Promises Grant for Genuine Debts

The President said that once the liabilities have been investigated and confirmed as legitimate, the government could provide a grant to help reduce the financial burden facing the factories.

“Tunataka kuchunguza, tukipata iko sawa sawa, mimi nitawasaidia grant ya serikali kupunguza hiyo madeni,” he said.

Ruto said the government had encountered a similar challenge in the sugar sector, where it inherited or was asked to address substantial debts without sufficient clarity on whether all the liabilities were legitimate.

He said the tea factory audit would help prevent questionable debts from being transferred to taxpayers while ensuring genuine financial obligations receive consideration.

MPs Cite Sh3.7 Billion in Tea Factory Loans

Yegon told the President that tea farmers in the region were suffering because of the heavy debts accumulated by their factories.

The MP cited Kapset Tea Factory, which he said had a loan of Sh1.7 billion, and Mogogosiek Tea Factory, whose debt he put at Sh2 billion.

“Tunaomba, Your Excellency, usaidie hawa wakulima wa majani chai, wameumia sana,” Yegon pleaded.

According to the MP, the debts were affecting the operations of the factories and limiting the benefits farmers receive from their tea production.

The President said resolving legitimate liabilities would ease financial pressure on the factories and create greater room for farmers to benefit from their produce.

Road Project to Boost Tea-Growing Region

President Ruto was in Bomet to officially commission the upgrading to bitumen standards of the Kapkatet-Boito-Kapset-Kaptien-Kapleleito-Kiptenden-Kapkoros-Kiplelji-Kapsimotwa-Kapkwen-Olbutyo-Siongiroi Road.

The project is expected to improve connectivity across the tea-growing region, facilitate transportation of agricultural produce and open up additional markets for farmers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Trending

More like this
Related

Govt Unveils Sh39bn Road Programme to Transform Meru County

MERU, Kenya - Deputy President Kithure Kindiki has announced...

Ruto Hints at Plan to Elevate Kericho to City Status as Sh5.6bn Housing Project Takes Off

KERICHO, Kenya - President William Ruto has hinted at...

Nikita Kering Reveals She Was Bullied by Teachers in High School

Award-winning Kenyan singer Nikita Kering has opened up about...

Nyachae’s Son Charged With Stealing Sh1.2m From Family Firm

NAIROBI, Kenya- Michael Moragia Nyachae, a son of former...