The business empire of billionaire David Langat has encountered significant challenges as auctioneers have initiated a forced sale of his tea estate located in Nandi.
Sources indicate that the auction is intended to recover an undisclosed sum owed to a local financial institution. READ FULL STORY
This development is perceived as a setback, particularly since Langat has been a close ally of President William Ruto, having provided substantial financial support during the presidential elections of 2013, 2017, and 2022.
Despite Ruto not being a candidate in the 2013 and 2017 elections, Langat’s financial backing was notable, leading to concerns among his associates regarding the president’s reluctance to assist him in this predicament.
“Ruto should be the first person to help him now. We wonder why he is not interested in this issue,” said an official aware of the issue.
Langat declined to comment on the recent developments with his friends noting that he is both shocked and stressed.
“He is worried because over 2000 people will lose their jobs,” said an insider.
Analysts contend that the recent action regarding Langat is driven by political motivations.
“They are targeting his estate for purchase at an auction which will be like a throw away price. Those doing this are his alleged friends,” said an insider.
According to an insider, individuals in close proximity to the president are considering the acquisition of the estate through an auction.
The insider further noted that Langat’s difficulties appear to have emerged in January 2024, following his company’s successful bid for a Ksh 60 billion contract to supply machinery to the Kenya Ports Authority, which was abruptly terminated by a powerful figure.
Reports suggest that a call was made to the KPA, pressuring management to redirect the tender to politician Edwin Yinda.
Additionally, when an Indian firm secured a contract to print KRA stamps, Langat, who served as the local agent, was excluded from the process.
“The Indian firm was instructed to remove Langat from the whole deal and work independently or with others. This shows he was targeted,” said the insider.
The Koisagat Tea group of companies, located in Nandi Hills, encompasses approximately 1,342 acres of land, along with various plants and machinery.
According to the auction notice, this land has been developed into a specialized tea zone aimed at export-oriented commercial tea production.
Additionally, the estate features 2.47 million tea bushes spread across 958.75 acres, as well as 100,942 eucalyptus trees and 2,223 cypress trees.
“Other portions of the tea estate are under residential use (managerial houses and labour camps). Woodlots are periodically harvested to provide wood fuel to the tea processing,” the notice stated.
The tea estate encompasses two educational institutions, namely Francis Kibet Memorial School and Koisagat Primary School, along with a factory section, a factory building, a multi-storey administration building, offices for estates and partnerships, a fuel station, a main store, a factory workshop, a carpentry workshop, and a weighbridge office.
Additionally, there is a chemicals storage facility, factory washrooms, labor camps equipped with shops, a social hall, managerial residences, guest accommodations, a swimming pool, and a residence for the chairman.
Recently, his issues with auctioneers became widely known, bringing attention to an individual who has largely remained out of the public eye.
According to a source from the auctioneer, there are plans to auction the extensive tea estate for Ksh 1.9 billion in a forced sale scheduled for August 1 at the auctioneer’s offices located in Nairobi’s Westlands area.
The auction notice indicated that the land is developed with a dedicated tea zone intended for export-oriented commercial tea cultivation.
“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
“The 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 by way of banker’s cheque(s) will be mandatory,” the notice says.
