Moi University's Rivatex handed over to global firm in bid to stabilise operations
Rivatex, which Moi University acquired in 2007, was reopened to support research, training, and textile production after a decade-long closure caused by mismanagement.
Moi University’s textile company, Rivatex East Africa, is now under the management of a foreign investor following years of financial difficulties and mounting debts.
The state has leased the factory to Arise Integrated Industrial Platforms (ARISE) to stabilise operations and restore production.
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Trade and Industry PS Juma Mukhwana, speaking at a handover ceremony in Eldoret, said the company had struggled despite receiving over Sh7 billion from the previous government.
Mukhwana noted that pending employee salaries have been cleared, and all outstanding liabilities will be settled by the government to ensure a smooth transition.
Under the new arrangement, ARISE is set to employ 118 workers initially, with plans to expand staffing as operations normalise.
Rivatex, which Moi University acquired in 2007, was reopened to support research, training, and textile production after a decade-long closure caused by mismanagement.
A recent audit by Auditor-General Nancy Gachungu revealed that the factory had racked up losses of Sh3.04 billion and owed Sh140.92 million in debts.
The company also faced operational challenges, including constant machinery breakdowns, delayed supplier payments, and retention money liabilities, which hindered its ability to meet production targets.
The report highlighted that Rivatex owed Sh2.13 million in accrued expenses, Sh56.88 million to suppliers, Sh67.29 million in retention fees, and Sh4.33 million in other liabilities.
Management attributed poor performance largely to frequent breakdowns in processing machines that prevented the firm from delivering high-quality goods on schedule.
The government hopes that ARISE’s industrial expertise will revive the company, improve efficiency, and protect jobs for local workers while stabilising the supplier network and boosting production capacity.
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