The government has leased out the troubled Rivatex textile firm in Eldoret to a strategic partner to operate it for 21 years.
PS for Industry Juma Mukhwana was at the company in Eldoret, where the announced the leasing plan Arise Integrated Industrial Platforms (Arise IIP ), which he described as an International firm with operations in the textile sector in many countries.
CEO of Arise IIP, George Olouka, and outgoing Chairman of Rivatex board of directors, Dr Cleophas Lagat, were present to witness the handing over.
Mukwana insisted that Rivatex would fully remain a state asset, but all operations would be managed by the firm with usual oversight by the government.
PS Mukhwana said the leasing process had been approved through all laid down procedures, including public participation in various parts of the country.
“What is happening is a strategic lease partnership with Arise Integrated Industrial Platforms (IIP) — a globally recognized industrial developer that specializes in building and managing industrial parks, manufacturing hubs, and textile ecosystems across Africa”, said the PS.
He said the 21-year lease allows ARISE IIP to revitalize, operate, maintain, and manage Rivatex under a performance-based framework while the Government retains ownership of all assets.
PS Mukwama said despite the government having used over Sh7 billion to revive Rivatex, the firm had collapsed, unable to run all its operations, including paying debts.
As at the start of this year, PS Mukhwana said the company had about 600 workers, more than half of whom were working on contracts which expired by last month.
About 240 of the workers were on permanent terms, and Mukwana said the state had used Sh94 million to pay all their dues and declared them redundant.
The PS said the company had been handed over with no debts for workers and that Arise would hire 118 former workers on new terms as a private entity, adding that those to be employed would not be government workers.
PS Juma Mukhwana (c) with CEO of Arise IIP George Aluoka (L) and outgoing Chairman of Rivatex board of directors Dr Cleophas Lagat during the handing over in Eldoret
PS Mukwama said the company was making heavy losses and incurring heavy debts, a situation which he said was unsustainable, hence the government intervention to bring in the strategic partner.
Olouka said they would inject modern technology and other necessary resources to fully revive Rivatex and enable it to create jobs for locals and be of economic value to the country.
“We have the necessary experience and expertise to make the difference in terms of turning around the company,” said Olouka.
Mukwan said for years, Rivatex faced operational, management, and financial challenges.
“Through this lease, Rivatex will access modern technology, private sector efficiency, international markets, and fresh capital investment, without losing public ownership,” he said.
He said the arrangement was a lease agreement, not a takeover or disposal.
CEO Aluoka said Arise IIP was a pan-African developer and operator of world-class integrated industrial zones.
It’s active in over 14 countries and promotes local value addition, economic diversification, and sustainable industrialization.
To date, he said more than 50,000 jobs have been created across its platforms.
He said its institutional shareholders include the Fund for Export Development in Africa (FEDA), the development impact platform of Afreximbank, Africa Finance Corporation (AFC), Equitane, and Vision Invest.
“Together with its partners, ARISE IIP is committed to unlocking Africa's full industrial potential through impactful infrastructure and strategic collaboration,” he said.
He said Arise IIP won a 21-year lease to operate, maintain, and manage Rivatex East Africa SEZ Limited following a competitive bidding process.
