Foreign investor takes over Moi University's RIVATEX company

ARISE Integrated Industrial Platforms took over the management of one of Kenya’s oldest textile mills, after many years of struggle to stay afloat.

Speaking in Eldoret after presiding over an on-boarding ceremony, Trade and Industry PS Dr. Juma Mukhwana noted the company collapsed even after being funded with over Ksh.7 billion by the last regime.

The PS said all the liabilities owned by the company will be paid by the government of Kenya, and that all employees salaries have been paid.

He said the state has reached an agreement with 'ARISE company' to start with 118 employees as they build capacity to hire more.

A recent audit report by the Auditor General Nancy Gathungu revealed that Rivatex had incurred accumulated losses amounting to Ksh.3.04 billion and debts exceeding Ksh.140.92 million.

The debts include 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.

Moi University acquired RIVATEX in 2007, years after the textile manufacturer had been closed for about 10 years due to mismanagement.

Then president Mwai Kibaki re-opened RIVATEX as a university facility for training, research, and product development.