The shortage of raw materials to run Rivatex has handed producers in the East African Community (EAC) a major windfall, with the Eldoret-based textile manufacturer now relying on the region to provide the bulk of its lint.
The firm said it is still operating below capacity despite the billions sunk into its revivals for the last two decades.
Inadequate raw materials, and high labor and electricity costs are some of the factors slowing down the revival of the once vibrant textile firm that had more than 10,000 employees.
Corporate services manager Patrick Nyaga said Rivatex is receiving 3,000 bales against a capacity of 20,000 monthly.
“Just like other textile firms in the country, the company is faced with a serious shortage of cotton and has to import the raw material from East Africa Community member states,” disclosed Mr Nyaga during a tour of the firm by government spokesperson Cornel Oguna.
Kenya produces an average of 5,300 tons of lint against a demand of about 38,000 tons monthly with the deficit being imported from neighboring countries.
SOURCES: BUSINESS DAILY