THE government has formally unveiled Arise Integrated Industrial Platforms as the new strategic partner to manage Rivatex East Africa Limited under a 21-year lease agreement.
Industry PS Juma Mukhwana said the decision followed a transparent international tendering process that began in February 2025.
Arise IIP emerged as the most qualified bidder to operate the factory on behalf of the government, with the PS assuring Kenyans that the textile firm remains fully owned by the state.
“This is a lease, not a sale. Rivatex remains government property,” he said. “The factory will be operated efficiently by a private investor, who will pay rent and share profits with the government. All liabilities, including pending staff salaries and benefits, have been settled, and all employees have been paid up to October.”
The PS explained that Rivatex had been operating below 10 per cent capacity before its closure, resulting in losses due to inefficiencies and challenges in sourcing raw materials.
He expressed optimism that the partnership would revitalise the factory, create jobs and strengthen the textile industry.
“The government invested close to Sh7 billion in this facility. Through this new partnership, we expect Rivatex to realise its full potential and support thousands of livelihoods,” he said.
Rivatex chairman Cleophas Lagat reiterated that the tendering process was open, transparent and in full compliance with procurement laws.
“We advertised widely in both local and international newspapers. All procurement procedures were followed and there were no shortcuts. We also conducted public participation in various cotton-growing regions, including Busia, Kisumu and Eldoret, to ensure that all stakeholders were involved.”
He reaffirmed that Rivatex remains 100 per cent government-owned, noting that the partnership will enhance transparency and accountability while strengthening the cotton value chain.
“This facility will continue to serve as a national textile industry. Cotton farmers will now have a reliable market, which will help them support their families and improve their livelihoods,” he added.
Arise IIP Kenya CEO George Olaka described the partnership as a milestone in Kenya’s industrial transformation, saying the company’s goal is to restore Rivatex to full productivity.
“Rivatex is not being sold or privatised, it remains a Kenyan asset. What changes is the opportunity to breathe new life into a national treasure through private sector efficiency and operational excellence,” he said.
He affirmed that Arise IIP, which operates similar facilities across Africa, will work closely with the government to modernize Rivatex, rehire and retrain former employees and strengthen linkages with cotton farmers.
“Over the next three years, we will invest in modernisation and capacity expansion and plan to build a 200-tonne-per-day integrated textile plant in Kenya,” he said, adding that at full operation, Rivatex will directly and indirectly support about 5,000 jobs across the cotton-growing regions.
Olaka added that the partnership will be guided by transparency, accountability and independent audits, emphasising that Arise IIP’s role is to partner, perform and demonstrate that public-private collaboration can deliver true transformation.
He noted that the partnership is not transactional but transformational, reaffirming that Rivatex is not closing down but rising again.
Rivatex had a total of 625 employees at the beginning of the year, comprising both contract and permanent staff. By August, contracts for 347 employees had expired, leaving 278 permanent and pensionable staff.
Under the new arrangement, Arise is expected to begin operations with 118 employees and progressively expand the workforce as production scales up. The total number of employees is projected to eventually exceed the original 600, creating additional job opportunities as the factory increases its production capacity.
The onboarding of Arise IIP comes as the government continues to push for industrial growth and job creation, under the Bottom-Up Economic Transformation Agenda (BETA), with renewed focus on reviving the cotton, textile and apparel value chain.
