The Kenyan government has leased Moi University-owned textile company, RIVATEX East Africa, to a foreign investor, signaling a major step toward reviving one of Kenya’s oldest textile mills. The move comes after years of financial losses and operational struggles.
ARISE Integrated Industrial Platforms has taken over management of the mill, aiming to restore its former glory. Speaking in Eldoret at the on-boarding ceremony, Trade and Industry PS Dr. Juma Mukhwana noted that the company collapsed despite receiving over Ksh.7 billion in funding under the previous administration.
The PS reassured stakeholders that all outstanding liabilities of the company will be cleared by the government. He confirmed that all employee salaries have been paid, ensuring financial stability as the company transitions under new management.
Under the new agreement, ARISE will start operations with 118 employees, with plans to expand the workforce as production capacity grows. This is part of a structured plan to revitalize the textile sector while safeguarding jobs.
An audit report by Auditor General Nancy Gathungu revealed the extent of RIVATEX’s financial troubles. By the time of takeover, the company had accumulated losses of Ksh.3.04 billion and debts exceeding Ksh.140.92 million. The debts included Ksh.56.88 million owed to suppliers, Ksh.2.13 million in accrued expenses, Ksh.4.33 million in retention money, and Ksh.67.29 million owed to the Moi University Pension Scheme.
RIVATEX’s history has been turbulent. Moi University acquired the struggling mill in 2007, more than a decade after it had been closed due to mismanagement. The takeover by ARISE now offers a fresh opportunity to revive Kenya’s textile industry, protect existing jobs, and attract further investment in the sector.
With this strategic partnership, RIVATEX aims to transition from decades of losses to a sustainable and productive future, contributing to local industry growth and job creation.
