Calls Mount For Forensic Lifestyle Audit On KTDA Director Simeon Rugutt Amid Graft Claims Financing His Billions Empire

Tea farmers demand accountability as questions swirl around Simeon Rugutt’s vast wealth accumulation

Pressure is mounting on the Kenya Tea Development Agency (KTDA) to subject its Chief Finance and Strategy Director Simeon Rugutt to a comprehensive forensic lifestyle audit amid escalating corruption allegations and questions over his vast wealth accumulation.

Tea farmers and civil society groups are demanding transparency from the financial services executive, whose opulent lifestyle has raised eyebrows given his public sector remuneration.

Sources within KTDA indicate that Rugutt’s assets portfolio has grown exponentially during his tenure, prompting calls for investigations into the source of his wealth.

The demands come against a backdrop of serious financial improprieties at KTDA, where Rugutt, alongside CEO Wilson Muthaura, borrowed a Sh18.2 billion loan to pay an early bonus to farmers ahead of last year’s general election in August, a move widely viewed as politically motivated to influence voting patterns.

Boardroom Wars Intensify

Boardroom wars at the Kenya Tea Development Authority (KTDA) have intensified, this time targeting its Chief Executive Wilson Muthaura and Chief Finance and Strategies officer Simeon Rugutt.

The pressure reached fever pitch when A Director of Kenya Tea Development Holdings (KTHDL), a subsidiary of KTDA and chairman Kiru Tea Factory in Muranga Geoffrey Kirundi Chege and the group, are pushing for the ouster of the two officials.

The Kiru Tea Factory board has leveled serious accusations against Rugutt, claiming his financial mismanagement resulted in Kiru Tea factory lose more than Sh100 million in claims and another Sh220 million in alleged loan scams.

These staggering figures have prompted questions about Rugutt’s financial stewardship and whether his personal enrichment came at the expense of tea farmers.

Lavish Lifestyle Raises Questions

Industry insiders describe Rugutt’s transformation from a modest accountant to a wealthy executive with multiple properties, luxury vehicles, and investments across various sectors.

His lifestyle has become a subject of intense scrutiny, with farmers questioning how a public sector employee could afford such extravagance on his declared salary.

Confidential sources reveal that Rugutt has acquired prime real estate in Nairobi’s upmarket suburbs, including Karen and Kileleshwa, while also maintaining properties in his native Rift Valley.

The executive is also said to own a fleet of high-end vehicles and has made significant investments in the hospitality industry.

The Illegal Bonus Scandal

The most damning allegations center around the irregular Sh18.2 billion loan that has burdened farmers with additional interest payments.

Records show that KTDA mortgaged its shares worth Sh18.2 billion to pay an early bonus to farmers ahead of the polls, with The loan was guaranteed by the KTDA Management Service, a subsidiary of KTDA Holdings.

Rugutt’s role in this transaction has drawn particular criticism, given his position as the Group Finance and Strategy Director. KTDA normally closes its books on June 30 with the bonus payment to farmers approved in September ahead of disbursement in October, but the 2021/2022 bonus was paid at the beginning of July, violating established financial protocols.

The financial burden on farmers has been severe.

For instance, farmers in Chinga tea factory in Nyeri had to pay close to Sh3 million in interest from the Sh200 million that they had received to pay an early bonus, demonstrating the direct cost of this irregular decision on the very people KTDA is supposed to serve.

Calls for Accountability

Tea farmer representatives across the country are now demanding a thorough investigation into Rugutt’s wealth accumulation.

They argue that a forensic lifestyle audit would reveal whether his assets are commensurate with his legitimate income or if they point to corrupt enrichment at farmers’ expense.

“We want to know how Mr. Rugutt has managed to accumulate such vast wealth while farmers struggle with declining returns,” said a tea farmer representative who requested anonymity.

“His lifestyle suggests income sources beyond his KTDA salary, and we demand answers.”

The Ethics and Anti-Corruption Commission (EACC) has been urged to launch investigations into Rugutt’s assets, with particular focus on his property acquisitions and business investments made during his tenure at KTDA.

The Ministry of Agriculture has already begun investigating the circumstances surrounding the controversial loan, with the besieged directors led by CEO Wilson Muthaura alongside Board Chairperson David Ichoho honoured summons to appear before an inquiry committee at Kilimo House.

However, farmers argue that these investigations must extend beyond the loan scandal to encompass a comprehensive audit of all senior executives’ wealth, particularly Rugutt’s, given his central role in KTDA’s financial operations.

Financial Mismanagement Allegations

The memorandum seeking Rugutt’s removal details extensive financial irregularities under his watch. They claim Muthaura and Rugutt, through proxies, were presiding over financial mismanagement that had caused cash flow problems at Kiru Tea factory.

These allegations suggest a pattern of financial impropriety that extends beyond individual transactions to systemic mismanagement that has enriched executives while impoverishing the very farmers they are meant to serve.

As pressure mounts for accountability, the tea sector stakeholders are demanding immediate action.

They want Rugutt and other implicated executives subjected to lifestyle audits that will trace the source of their wealth and determine whether they have been enriching themselves illegally.

The Kenya Association of Tea Farmers has threatened to pursue legal action if the government fails to order comprehensive investigations into the wealth of KTDA executives.

They argue that the tea sector’s reputation and farmers’ livelihoods depend on rooting out corruption and ensuring transparent leadership.

For Simeon Rugutt, once viewed as a competent financial professional, these allegations represent a fall from grace that could end his career and potentially result in criminal prosecution if investigations reveal corrupt enrichment.

The coming weeks will determine whether he can clear his name or join the growing list of Kenyan executives brought down by corruption scandals.

The ball is now in the court of investigating agencies to determine whether Rugutt’s billions empire is built on legitimate business acumen or the systematic looting of farmers’ resources.

Tea farmers across Kenya are watching keenly, demanding nothing less than full accountability for their stolen billions.​​​​​​​​​​​​​​​​