Foreign Investor Takes Over Moi University’s Rivatex Company
The government has handed over the management of Rivatex East Africa Limited, a textile firm owned by Moi University, to a foreign investor after years of financial distress that left the company struggling to remain viable.
According to Trade and Industry Principal Secretary Dr. Juma Mukhwana, the state reached a deal with ARISE Integrated Industrial Platforms, which will now manage one of Kenya’s oldest textile manufacturers. The move aims to revive the company and restore its role in Kenya’s manufacturing sector.
Arise to Lead Rivatex Revival
Speaking during an on-boarding ceremony in Eldoret, Dr. Mukhwana said Rivatex had collapsed despite receiving over Ksh7 billion in government funding under the previous administration. He added that the Government of Kenya would clear all the company’s existing liabilities, including pending supplier payments, and confirmed that employee salaries had already been settled.
“The government has entered into an agreement with ARISE to begin operations with 118 employees as the company gradually builds capacity to hire more,” Dr. Mukhwana stated.
Rivatex’s Mounting Losses
A recent audit report by Auditor General Nancy Gathungu revealed that Rivatex had incurred accumulated losses of Ksh3.04 billion and debts amounting to Ksh140.92 million. The report detailed the liabilities, including Ksh56.88 million owed to suppliers, Ksh2.13 million in accrued expenses, Ksh4.33 million in retention money, and Ksh67.29 million owed to the Moi University Pension Scheme.
The PS said the takeover marks a crucial turning point in efforts to revive Kenya’s struggling textile industry and attract long-term investment.
Rivatex’s History and Legacy
Rivatex was initially established in the 1970s but shut down in the 1990s due to mismanagement. Moi University acquired the company in 2007, converting it into a facility for training, research, and product development in the textile sector.
Former President Mwai Kibaki later presided over its reopening, positioning it as a model for local textile innovation. However, despite major government investments, Rivatex has faced persistent challenges related to debt management, obsolete machinery, and low productivity.
With ARISE now at the helm, the government hopes the investment will restore Rivatex’s competitiveness and create more employment opportunities in the Uasin Gishu region.
