EAC windfall for textile firms

The shortage of raw materials has made the East African Community EAC a major windfall for producers, with the Eldoret-based textile manufacturer relying on the region to provide the bulk of its lint.

The firm said it is still operating below capacity despite billions sunk into its revivals for the last two decades.

The revival of the once vibrant textile firm that had more than 10,000 employees has been slow due to inadequate raw materials, high labour and electricity costs and inadequate raw materials.

Patrick Nyaga, the company's services manager, said Rivatex received 3,000 bales against a capacity of 20,000 monthly.

Like other textile firms in the country, the company is faced with a severe shortage of cotton and has to import raw material from East Africa Community member states, according to Mr Nyaga during a tour of the firm by government spokesperson Cornel Oguna.

Kenya produces 5,300 lint per day, compared to a demand of about 38,000 tons per month, with the deficit being imported from neighbouring countries.

Nyaga said that the textile firm would increase cotton consumption from 10,000 bales a day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from 5,000. It takes more than 500,000 acres of cotton to ensure a steady supply of raw materials to support smooth operations.

The company has entered into a partnership with counties in the region to increase the supply of raw materials because of the fact that we do not have enough Bt cotton seeds in the market, which means we are recycling the conventional seeds, leading to low productivity, said Mr Nyaga.

Although we invested in Bt cotton, the production is insufficient to support our operations. He said that acreage under Bt production increased from 33,193 acres to 149,000 acres but the production remained at 10,000 bales annually, which is too low to sustain the operations of textile firms in the country.

Nyaga said that the production is like a drop in the sea because demand outstrips supply to many textile firms in the country.

The county produces 5,300 tons of cotton against a demand of about 38,000 tons, with a deficit of about 17 billion imported from neighbouring countries.

The Treasury recently invested 650 million in the upgrade of the New Rivatex.

The government is committed to fast-tracking the modernisation of Rivatex, expand job creation and ready market for cotton, according to Mr Oguna.