Auctioneers forced the sale of billionaire businessman David Langat’s tea estate in Nandi, thrusting his empire into uncharted territory.
This is aimed at raising an unknown amount of money owed to a local bank.
Given that Langat is a close confidant of President William Ruto, the move is considered a blow.
He heavily funded him during the 2013, 2017, and 2022 presidential polls.
Even though Ruto did not run in 2013 or 2017, Langat funded him.
His friends are wondering why the president has refused to bail him out.
“Ruto should be the first person to help him right now. We wonder why he is not interested in this issue,” an official familiar with the matter stated.
Langat refused to comment on the latest developments. His close allies said he was shocked and stressed.
“He is worried because over 2,000 people will lose their jobs,” said an insider.
Popularly known as DL, the tycoon made his fortune running his empire from Mombasa and has vast interests in real estate, agribusiness, hospitality, and the energy sector, among others.
Langat is among the businessmen from North Rift who backed Ruto’s 2022 presidential bid in particular.
When Ruto visited Kapsabet in March 2023 for prayers, he was among the leaders who accompanied the Head of State, but he has since kept a low profile.
He finds himself in a similar situation as numerous other businessmen in the region. Others include Zedekiah Buzeki and Mishra Kiprop.
Pundits believe the latest move on Langat is politically motivated.
“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 aware of the developments.
The insider stated that those close to the president are eyeing the estate and want to buy it at an auction.
The President recently appointed him to the National Investment Council, and he has made investments in agribusiness, real estate, energy, and hospitality, among other sectors.
He had also accompanied Ruto on a trip to the USA.
An insider said Langat’s troubles seem to have come out in January 2024 when his company won a Sh60 billion tender to supply machinery at the Kenya Ports Authority, but someone powerful cut the deal short.
According to insiders, the KPA received a call demanding that the management give the contract to politician Edwin Yinda.
Langat, the local agent, found himself locked out when an Indian firm won a tender to print KRA stamps.
The Indian firm received instructions to remove Langat from the entire deal and work either independently or with others. This indicates that the insider was specifically targeting him.
The Koisagat Tea group of companies based in Nandi Hills comprises land measuring about 1,342 acres, plants, and machinery.
The auction notice stated that the land is being developed with an exclusive tea zone for export-oriented commercial tea cultivation.
The estate also has 2.47 million tea bushes occupying 958.75 acres, 100,942 eucalyptus trees, and 2,223 cypress trees.
“Other portions of the tea estate are for residential use (managerial houses and labor camps).
“We harvest woodlots periodically to provide wood fuel for tea processing,” the notice stated.
The tea estate also has two schools:
The Francis Kibet Memorial School and Koisagat Primary School feature a factory section, a factory building, a multi-story 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 chemical store, factory washrooms, labor camps with shops, a social hall, managerial houses, guest houses, a swimming pool, and a chairman’s residence.
His issues with auctioneers became public on Monday, drawing attention to a man who has largely kept himself out of the limelight.
According to a source at the auctioneer, they plan to sell the expansive tea estate for Sh1.9 billion at the forced sale on August 1 at the auctioneer’s offices in Nairobi’s Westlands area.
The auction notice stated that the land is being developed with an exclusive tea zone for export-oriented commercial tea cultivation.
“We request that all intending purchasers view the property and verify the details, as the auctioneers do not warrant them.”
“Each property should receive a deposit of 10% in cash or a banker’s check at the end of the auction.”
The remaining balance for each property must be paid to the chargee’s advocates within ninety (90) days. A bidding deposit of Kshs 10 million for each property by way of a banker’s check(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 says.
“Our offices will make available, upon request, all the aforementioned property details of encumbrances, including names, addresses, etc., along with user and any other restrictions, plus rates and rents payable.” The sale of the above property will be subject to reserve prices and land board consent, if applicable.”
On September 10, 2024, the auction will take place in Westlands.
