Parliament has allocated Sh600 million to modernise Rivatex as it seeks to expand its operations to international markets.
The Budget and Appropriations Committee (BAC) says Rivatex should complete its modernisation and acquire specific equipment at an estimated Sh600 million.
Read: Rivatex benefits EAC cotton farmers on Kenya shortage
The committee said Rivatex recently signed a memorandum of understanding (MoU) with international investors from China and the US to unlock billions of shillings.
“One of the investors has expressed a need for the supply of fabric to the US market. However, Rivatex needs accreditation to be eligible to supply to the US market,” said BAC in a report on the 2023/24 Budget Estimates.
The committee says Rivatex must complete its modernisation to be accredited.
“Once this funding is secured and the accreditation is obtained, Rivatex anticipates becoming self-sufficient and no longer reliant on financial support from the exchequer,” said James Gakuya, who chairs the Trade, Industry and Cooperatives committee in submissions to BAC.
“The projected surplus is up to Sh1.5 billion, highlighting the potential profitability and sustainability of their operations in the future.”
MPs in February shot down a proposal by the Trade and Industrialisation Ministry to move Rivatex from Eldoret to Naivasha.
The Committee on Trade and Industry told the Industry PS Juma Mukhwana to drop the idea after MPs from the North Rift region warned they would not accept the apparel manufacturing company to be moved to the Naivasha Special Economic Zone.
Dr Mukhwana told the committee that there are plans by the ministry to transfer the Eldoret-based Rivatex to Naivasha.
Committee vice chairperson Maryanne Keitany led other MPs in rejecting the proposal, arguing the move would hurt the local community, which depends on the apparel firm for livelihood.
“We will reject any attempt to move Rivatex from Eldoret to Naivasha. That is a big no to us.
The factory supports many families who depend on it for employment. The best you can do is to open a subsidiary company in Naivasha but not to move Rivatex,” said Ms Keitany.
She said political leaders would block any attempts to relocate Rivatex from Eldoret.
Ms Keitany said the government had pumped a lot of money into the revival of Rivatex, and moving it out of Eldoret would not be possible.
The ministry had informed the committee a policy decision to relocate Rivatex to Naivasha’s Special Economic Zone had been made.
