The Standard on Sunday
Date: 31.05.2015
Page 29
Article size: 412 cm2
ColumnCM: 91.55
AVE: 210577.77
Parliament allocates Sh500m to reviW
Rivatex, but remains silent on PanPaper
By PAUL WARILA
Parliament has approved the dis­ steady supply of cotton from its own
leased farms. Other challenges are duty
tile firm Rift Valley Textile Mills (Rivatex) imposed on imported equipment for
in what is set to give a new lease of life to cotton ginning, weaving and milling and
the ailing cotton industry.
provision of high quality seeds to farm­
According to die budgets and appro­ ers. Cotton farmers will he the biggest
priations report tabled in Parliament last beneficiaries in the revival of the textile
week, the Mutava Musyimi­chaired firm. Already the 18 existing textile mills
committee reallocated Sh500 million are running at between 30 ­35 per cent
from the ministry of Industrialisation capacity.
and Enterprise Development to Rivatex, Economic zones.
The money will be used to purchase
But the parliamentary committee re­
equipment tor its textile factory.
After its collapse, Rivatex was taken mained silent on Webuye­based Pan Pa­
over by Moi University in 2007 and per, meaning it may take a while longer
turned into a demonstration facility for to see smoke coming out of tlie factory
itsstudents.ifreformer textile giant once in Bungoma County.
However, the departmental Commit­
employed more than 1,000 and provided
market of ahout 900 tonnes of cotton to tee on Finance, Planning and Trade has
f lift Valley farmers in its heydays of 1980s. also recommended that an additional
But the firm went under due to its in­ Sh400 million be allocated to the Kenya
ability to compete with cheaper imports Cooperative Creameries (KCC) to stan­
from tlie second­hand clothing com­ dardise its powder milk processing plant
monly know as the mitumba industry in Eidoret. Also, the committee wants
bursement of ShSOO million to revive tex­
er development council has beeh given
Sh500 million to do leather relaiet: activ­
ities and the EPZAs past history of low
absorption capacity," minutes capturing
the deliberations by the departmental
Committee on Finance, Planning and
Trade read in part.The minutes w^repart
of die budget report. The commit tee al­
so wants a Shi billion reduced frpm the
pensions contributory scheme at id an­
other Sli2 billion slashed from the hu­
man resource reforms under Treasury.
The Kenya Revenue Authority: KRA),
which shoulders the burden ot 'j raising
the growing revenue targets, will also not
be spared a budget cut if thecomJnittee's
recommendations see the lighi of day.
According to die minutes, the coukinittee
wants Sh290 million slashed from KRA
and Sh71 million taken from the data re­
covery cen tie in Naivasha.
and the liberalisation of the market
Shi.5 billion be used for ihe purchase of
This comes at a time a trade lobby,
land for special economic zones in Nai­
the Kenya National Chamber of Com­ vasha.
merce and Industry (KNCCI) wants Riva­
When he toured the Standard Gauge
tex reverted to the government and re­ Railway (SGR) inVoi last week, President
smtctitred to create additional
Uhuru Kenyatta revealed that the Gov­
employment opportunities and propel ernment was in talks with the Chinese
economic growth of the North Rift re­ firm constructing die railway to extend it
gion.
to Naivasha to allow the establishment of
KNCCI argues that Rivatex has failed these economic zones.
to achieve the high expectations of cre­
But in what is likely to cause discom­
ating more jobs since it was taken over fort in the Industrialisation ministry,
by Moi University seven years ago de­ which is facing a budget cut this year, the
spite being given resources. Rivatex has trade committee proposed diat the Sh3
already acquired 50,000 acres of land in billion allocated to the Export Processing
Mwingi, anodier 1,000 and 100 in Kerio Zones Authority (EPZA) be reduced by
Valley and Mogotio, respectively to grow
its own cotton. Moi University says in a
report that the factory is set to he a cen­
tre for job creation by providing means
ShSOO million.
"This is due to the fact that the leath­
of livelihoods through direct and indirect
employment opportunities.
The cost of importation of cotton
from Tanzania and I Jganda, the report
said, is set to reduce once it achieves
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
The Standard on Sunday
Date: 31.05.2015
Page 29
Article size: 412 cm2
ColumnCM: 91.55
AVE: 210577.77
An employee at work at Rivatex in Eidoret. The Parliament has approved the disbursement of Sh5O0 million to revive
the textile firm, [photos: kevin tunoi/standard]
Torn apart: The textile manufacturer once employed more than 1,000 workers and
provided market of about 900 tonnes of cotton to Rift Valley farmers in 1980s
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya