ELDORET, Kenya — Moi University’s textile subsidiary, Rivatex East Africa Limited, has been handed over to a foreign investor after years of mounting debts and poor performance that pushed the factory to the brink of collapse.
The government has leased the Eldoret-based plant to Arise Integrated Industrial Platforms (ARISE), an international firm, in a move aimed at reviving production, restoring efficiency, and protecting hundreds of jobs.
Speaking during the handover ceremony on Thursday, Trade and Industry Principal Secretary Juma Mukhwana said the transition marks a new chapter for Rivatex, which has struggled financially despite receiving over Sh7 billion in government support over recent years.
“We have cleared all pending salaries and the government will settle the remaining liabilities to ensure a smooth transition,” Dr Mukhwana said, expressing optimism that ARISE’s industrial expertise would steer the firm back to profitability.
Under the new management, ARISE plans to retain 118 employees initially, with more to be hired as operations stabilise.
Rivatex, which Moi University acquired in 2007 to support textile research, training, and manufacturing, was once considered a model for Kenya’s industrial revival.
However, persistent operational and management challenges eroded its capacity over time.
A recent audit by Auditor-General Nancy Gathungu showed that the factory had accumulated losses amounting to Sh3.04 billion and debts of Sh140.9 million.
The report cited recurring machinery breakdowns, delayed supplier payments, and retention money liabilities that hampered production.
The audit also detailed unpaid obligations, including Sh56.9 million to suppliers, Sh67.3 million in retention fees, and Sh4.3 million in other liabilities.
Management previously blamed the company’s poor performance on outdated equipment that frequently stalled production and compromised the quality of finished goods.
The government now hopes that ARISE’s intervention will stabilise Rivatex’s finances, improve productivity, and revive the textile value chain that supports thousands of farmers and small businesses in the region.
