The government says Rift Valley East Africa Limited, which was revived for more than Sh7 billion, is operating below capacity due to an acute cotton shortage.
Spokesman Cyrus Oguna on Tuesday said although Rivatex employs more than 6,000 people directly and indirectly, it is yet to achieve full capacity despite having the latest equipment.
The company has also denied reports it is facing serious challenges, including corruption, nepotism, low morale and cash flow problems that may cause another collapse.
Auditor General Nancy Gathungu in her latest report said the company is among those struggling with serious challenges.
The company last month sacked more than 50 contract workers amid claims senior managers had hired relatives, thus causing low morale.
In one case, a top manager is accused of hiring five in-laws and appointing them to senior positions.
However speaking at the company in Eldoret, GM Patrick Nyagah denied the allegations and said they had made great strides in reviving the firm.
It had collapsed before it was bought by Moi University and revived through support from the government and donor partners.
“We have nothing like low morale among staff, no delays in salaries as claimed. In fact, last week I signed a cheque for their statutory deductions," Nyagah said.
He spoke during a tour of the company by Oguna and other national government projects ahead of an tour by President Uhuru Kenyatta.Uasin Gishu county commissioner Stephen Kihara was present.
Oguna urged the media not to focus on negative aspects at the company but highlight opportunities available for Kenyans, especially young people.
“This company was completely dead and it has taken a lot of effort to bring it up to the level where it is. There is a lot yet to be done but we are on the right path," Oguna said.
He said the company is under the manufacturing pillar of the Big 4 to expand the country's economy. Oguna said there were opportunities for farmers to grow more cotton, which is in high demand.
Kenya spends more than Sh40 billion to import cotton and other textiles and apparel. Oguna said the government was working with Rivatex to inform farmers and y9ung people so they can tap into potential in the textile sector.
Oguna also addressed youth leaders in Eldoret and toured the Eldoret Southern Bypass before visiting projects in Trans Nzoia county.
(Edited by V. Graham
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