18 August 2014

Kenya: Rivatex Looks to India in Sh7.9 Billion Expansion Plan

The Kenyan government will sign a financing agreement with India for expansion of the Rift Valley Textile Company, once the latter is satisfied with the firm's revival.

Rivatex's operations will be expanded at a cost of Sh7.9 billion. The firm is owned by Moi University, which acquired and revived it after it collapsed.

Yogeshwar Varma, India's High Commissioner to Kenya, visited the factory on Saturday to assess its operations before negotiations for the agreement are completed.

The Export-Import Bank of India is to provide funding for the planned expansion of the textile company.

"We are looking at details of providing the soft loans for funding the Rivatex expansion project and plans for the project are in advanced stages," he said during a courtesy call to Uasin Gishu Governor Jackson Mandago.

Varma said the Indian government has already received a final report on the project and is now examining it for details. However, he said cotton shortage is a major hurdle and should be addressed under the plan to expand the factory's operations.

"We met the Rivatex team to look at how we can bring up the factory in a commercially viable manner," Varma said.

Under the expansion plan, new machinery will be installed to boost its production capacity. Experts from India have assisted in laying out a marketing strategy for Rivatex's products.


Gunmen Destroy Communication Mast in Mandera

Suspected Al-Shabaab militants have attacked and destroyed a communication mast at Fino Town, Lafey Sub-County in… Read more »

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,000 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.