In a bold move to revive one of Kenya’s oldest textile manufacturers, the Ministry of Trade, Industry, and Investments has officially transferred the operations of Rivatex East Africa Limited to Arise IIP Limited, a pan-African industrial investor.
The 21-year lease agreement, signed on October 9, marks a turning point for the financially struggling Eldoret-based company, which has faced years of debt, inefficiency, and heavy reliance on government bailouts despite receiving billions of shillings in public investment.
Arise IIP to Revitalize Operations
Arise IIP — known for its textile operations in Togo, Benin, and other African nations — is expected to inject new capital, restructure management, and implement modern efficiency measures. According to Industrialisation Principal Secretary Juma Mukhwana, the new investor will address long-standing challenges including excessive staffing, high energy costs, and outdated production systems.
“Even though the government and development partners have invested billions, Rivatex has been running at below 10% capacity,” said Mukhwana. “Electricity costs alone stand at KSh 180 million, and employees have gone for months without salaries.”
To stabilize operations, Arise IIP has already cleared KSh 94 million in unpaid staff salaries and committed to a complete overhaul of the company’s structure.
Massive Layoffs and a New Staffing Plan
As part of the restructuring plan, 3,000 employees — both permanent and contract — have been released in accordance with Kenyan labor laws. Only 118 of the original 625 permanent staff will be retained, focusing on core technical and managerial functions.
George Olaka, CEO of Arise IIP, confirmed that the company will pay a fixed lease fee to the government through the National Treasury while taking full responsibility for operational costs.
“All existing employees have been formally released through a redundancy process to allow for a fresh and transparent staffing structure,” Olaka explained.
Financial Losses and Long-Term Decline
Rivatex, once a regional textile powerhouse, has struggled for decades due to high energy costs, limited cotton supply, and inefficient manufacturing practices. The company reported a loss of KSh 347.6 million in the fiscal year ending June 2023, adding to a cumulative deficit exceeding KSh 3 billion.
Before being placed under receivership in 2000, Rivatex produced more than 15 million meters of fabric annually. Despite recent efforts such as recycling 32,800 kg of fiber waste into yarn for school uniforms, production levels have remained far below potential.
A New Chapter for Kenya’s Textile Industry
The government hopes that private-sector efficiency and investment under Arise IIP will finally unlock Rivatex’s full potential and strengthen Kenya’s textile and cotton value chain.
Mukhwana expressed optimism that this transition would not only rescue the ailing firm but also revitalize the local textile ecosystem, attracting new jobs, export growth, and innovation in the long term.
