Members of Parliament have raised concerns that the high cost of energy is threatening the revival and long-term sustainability of Rivatex East Africa, the once-thriving textile manufacturer based in Eldoret.
The legislators noted that despite substantial government investment aimed at restoring the company’s production capacity, surging electricity tariffs and operational expenses are undermining progress.
During a recent session, MPs stressed that energy bills have become a major financial burden for Rivatex, limiting its ability to compete with cheaper textile imports. They argued that without urgent intervention to reduce production costs, the government’s efforts to revive the factory could be in vain.
Some legislators suggested that Rivatex be granted preferential electricity rates or be connected to alternative energy sources to ease the pressure on its operations.
Rivatex, which was revived in recent years through significant capital injection, was envisioned as a key driver in Kenya’s industrialization and job creation agenda.
The factory was expected to boost the cotton value chain by providing a stable market for farmers while reducing the country’s reliance on imported fabrics. However, MPs cautioned that the current cost structure is making it difficult for the company to operate at full capacity and deliver on these objectives.
Several lawmakers pointed out that the high cost of energy is not unique to Rivatex but is a challenge affecting many manufacturing firms across the country.
They called on the Ministry of Energy and the Ministry of Trade to collaborate in reviewing power tariffs for industries, especially those seen as strategic to the economy.
The debate highlighted the broader issue of competitiveness in Kenya’s manufacturing sector, with legislators warning that without affordable and reliable energy, the vision of reviving industries like Rivatex will remain elusive.
They urged immediate policy reforms to ensure the factory not only survives but thrives as a symbol of Kenya’s industrial resurgence.
Written By Ian Maleve