David Langat: Billionaire on auction over KSh2.1B debt

The tycoon, better known by his initials DL, amassed his wealth building an empire out of Mombasa and is well-versed in the real estate, agribusiness, hospitality, and energy industries, among others.
His problems with the auctioneers were made public on Monday, bringing a guy who has generally avoided the spotlight to the public’s notice.
When contacted for comment about the auction notice, he opted not to provide further information. He said, “I am going to give you all the details and inside information on the happenings and the inside story at the DL Koisagat tea company in Nandi county.” however he did not.
According to a source at Graham Investments, they intend to sell the sizable tea estate for Ksh1.9 billion at the forced auction, which will take place on August 1 at the auctioneer’s offices in Nairobi’s Westlands neighborhood.
President William Ruto is seen as having a tight relationship with the millionaire. He was one of the leaders that accompanied the Head of State when Dr. Ruto traveled to Kapsabet in March 2023 for prayers, but he has since kept a quiet profile.
The Nandi Hills-based Koisagat Tea group of businesses has 1,342 acres of land, together with buildings, equipment, and plants.
The area is created with an exclusive tea zone for export-oriented commercial tea cultivation, according to the auction notice.
A total of 2,47 million tea bushes covering 958.75 acres, 100,942 eucalyptus trees, and 2,223 cypress trees are also present on the estate.
Other areas of the tea estate are used as homes, including management homes and labor camps. Periodically, woodlots are cut to provide fuel for the tea processing, according to the notification.
Mr. Langat is one of the North Rift businessmen who supported Dr. Ruto’s run for president in 2022.
He recently received a presidential appointment to the National Investment Council and has made investments in a variety of industries, including agribusiness, real estate, energy, and hospitality.
The tea estate also features a fuel station, a major store, a factory workshop, a carpentry workshop, and a weighbridge office in addition to two schools, Francis Kibet Memorial School and Koisagat Primary School, a factory section, a factory building, a storey administration building, estates and partnerships offices, and so on.
A chemical store, restrooms in the factories, work camps with stores, a social hall, executive homes, guest homes, a swimming pool, and the chairman’s apartment are all there.
The letter stated that water was obtained from “at least three mini dams-reservoirs across the property” and was then pumped to a central treatment facility before being distributed and stored in the numerous concrete tanks and water towers.
Additionally, the notice notified the upcoming sale of Mr. Langat’s properties in Mombasa town’s Shimanzi neighborhood, which were registered in the name of Koifan Developers Ltd.
The auctioneer hopes to raise Ksh200 million from the sale, which will take place on July 31 in Mombasa.
The facility, which consists of a 0.7-acre tract created with a four-story office building and five go-downs, is used, among other things, for processing and packaging tea goods.
At the drop of the hammer, the buyers will need to put down 10% of the purchase price in cash or a banker’s check.
The notice stated that a banker’s check deposit of Ksh5 million would be required for property number 2 (the Mombasa property), and Ksh10 million would be required for property number 1 (the tea plantation).
The tea estate has been included in Mr. Langat’s bigger DL Group, which claims to have been established by the businessman more than 30 years ago on its website.
According to a statement on the company’s website, “The DL Group grew from its modest beginnings in the coastal City of Mombasa and expanded into the tea production sector through the DL Koisagat Tea Estate in Nandi County in the Great Rift Valley.”
In addition, the firm claims that as part of its innovations in 2013, purple tea was introduced at Koisagat Tea Estate.
“Kenya’s Tea Research Foundation taught us about it, and we wasted no time in growing it on roughly 100 acres. As a result, we started one of the first businesses in Kenya to begin cultivating and ultimately processing purple tea. Purple tea is fairly popular in Europe and China, so we developed this with those markets in mind, the company claims.
During the presidency of John Magufuli, the Mombasa-based tycoon relocated to Tanzania, where he held thousands of hectares of tea plantations.
He has now moved back to Kenya, where he now manages his operations that are spread out across the area, other African nations, and Europe.
The tycoon is the owner of Mombasa’s Nyali Mall, which has more than 330,000 square feet of office space in addition to stores, restaurants, and showrooms.
In addition to owning a tea plantation, the tycoon also owns DL Farms, which, according to its website, uses advanced agricultural techniques to guarantee good yields while protecting the environment and its partners.
A few years ago, Mr. Langat received approval to create a special economic zone in the town of Eldoret, Uasin Gishu County.
Mr. Langat also wants to create what he calls an Olympia City within the zone, which will include lodging facilities, a shopping center, local and foreign schools, amusement and recreation zones, a state-of-the-art hospital, contemporary lodging facilities, and up to 4,000 residential units.