By THE DISPATCH DIGITAL REPORTER
Billionaire businessman David Langat’s empire has been plunged into uncertainty after auctioneers listed his tea estate in Nandi for a forced sale. This move aims to recover an unspecified amount of money owed to a local bank.
This development is seen as a significant blow, given Langat’s close ties with President William Ruto. Langat heavily funded Ruto during the 2013, 2017, and 2022 presidential elections, despite Ruto not being a candidate in 2013 and 2017.
Friends of Langat are puzzled by the President’s refusal to intervene. “Ruto should be the first person to help him now. We wonder why he is not interested in this issue,” said an official familiar with the situation.
Langat has refused to comment on the recent developments, but his close allies have indicated that he is shocked and under significant stress. “He is worried because over 2,000 people will lose their jobs,” said an insider.
Popularly known as DL, Langat amassed his fortune while managing his vast business empire from Mombasa, with interests in real estate, agribusiness, hospitality, and energy, among other sectors.
Langat is one of the prominent businessmen from the North Rift region who supported Ruto’s 2022 presidential bid. When Ruto visited Kapsabet in March 2023 for prayers, Langat was among the leaders accompanying the President, but he has since maintained a low profile.
He joins other businessmen from the region, such as Zedekiah Buzeki and Mishra Kiprop, who have found themselves in similar predicaments. Pundits believe that the move against Langat is politically motivated.
“They are targeting his estate for purchase at auction, likely at a throwaway price. Those orchestrating this are supposedly his friends,” said an insider aware of the developments.
The insider further revealed that individuals close to the President are eyeing the estate and intend to acquire it through the auction process.
Recently, Langat was named by the President to the National Investment Council and has investments in agribusiness, real estate, energy, and hospitality, among other sectors. He also accompanied Ruto on a trip to the USA.
An insider added that Langat’s troubles began in January 2024, when his company won a KSh 60 billion tender to supply machinery at the Kenya Ports Authority. However, someone powerful reportedly intervened, cutting the deal short. Insiders claim a call was made to KPA, forcing management to award the tender to politician Edwin Yinda.
Additionally, when an Indian firm won a tender to print KRA stamps, Langat, who was the local agent, was excluded from the deal. “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, based in Nandi Hills, consists of land measuring about 1,342 acres, including plants and machinery.
The auction notice indicated that the land is developed with an exclusive tea zone for export-oriented commercial tea cultivation. The estate also boasts 2.47 million tea bushes over 958.75 acres, 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 for the tea processing,” the notice stated.
The tea estate also includes 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, a factory workshop, a carpentry workshop, and a 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 the chairman’s residence.
His troubles with auctioneers became public on Monday, drawing attention to a man who has largely stayed out of the spotlight.
A source at the auctioneer’s office stated that they hope to sell the expansive tea estate for KSh 1.9 billion in a forced sale to be held at the auctioneer’s offices in Westlands, Nairobi.
The auction notice stated that the land is developed with an exclusive tea zone 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 by banker’s cheque at the fall of the hammer.”
“The balance will be payable within ninety (90) days for each property to the chargee’s advocates. A bidding deposit of KSh 10 million for each property by way of banker’s cheque(s) will be mandatory. Please note that failure to pay the balance by the confirmed purchaser will result in forfeiture of all deposits paid,” the notice said.
“All the aforementioned property details, encumbrances, including names, addresses, etc., together with user and other restrictions, plus rates/rents payable, will be made available on request at our offices. The sale of the above property will be subject to reserve prices and land board consent, if applicable.” The sale is scheduled to take place on 10th September 2024 in Westlands.