Kenya’s manufacturing sector is about to receive major financial assistance from India.
Prime Minister Narendra Modi on a visit to Kenya announced a $45 million loan to help the country revive the Rift Valley Textiles Factory (Rivatex) and other focused industries, local outlets reported.
“I’m also particularly pleased that the Indian Exim bank has extended a facility of $30 million which will go towards the revival of the Rivatex textile factory,” Uhuru Kenyatta, president of Kenya, said.
This financial assistance will allow Kenya to work with other nations to build up its ailing textile industry. During Modi’s visit, India and Kenya signed seven contracts to foster this goal.
Rivatex was a key contributor to East Africa’s textile sector for 25 years before it ceased operations in 2000. An average of 2,800 cotton tons and 550 polyester/viscose tons produced more than 10 million meters of fabric at the factory each year. According to the company, no other textile provider has replaced Rivatex in Kenya for 14 years.
Rivatex is now a Moi University facility for product development, extension, production and research. An integrated textile mill remains on the property and it is still able to complete the textile processing cycle.
No updates have been released yet about how Rivatex will use the funds to revamp its business and facilities.