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Related Keywords: ATA, bales, cotton, fiber, government, Kenya, Mills, Rivatex, supply chain, Tanzania, Textile, Uganda

The quest to return Kenya’s cotton farming to profitability has received a vital jolt with the recent reopening of textile factories in the country.

Two weeks ago, President Uhuru Kenyatta presided over the official reopening of the Rivatex textile factory with a strong pitch for more cotton growing in the country. Besides the Eldoret-based cotton processor, Thika Cotton Mills, Bedi Investments and Ken Knit factories have also reopened their doors to cotton-processing.

Related Keywords: economically and diplomatically, four-nation tour of Africa, lends credit line to Kenya, other smaller industries, part of a policy push to make India more global player, Prime Minister Narendra Modi, revive The Rift Valley Textile Industry, Rivatex, via Export Import Bank of India

Prime Minister Narendra Modi who is on a four-nation tour of Africa that is part of a policy push to make India a more global player, economically and diplomatically on Monday extended a $45 million credit line to Kenya via India’s Export Import Bank (Exim Bank) to revive The Rift Valley Textile Industry (Rivatex) and other smaller industries.

Modi during a news conference with Kenyan President Uhuru Kenyatta said that India is Kenya's largest trading partner and the second largest investor here. There is a potential to achieve much more.

Related Keywords: cotton industry, expand and purchase equipments, faclitate operations, investors to take advantage of emerging business opportunities encourage cotton farming, Kenyan government, Rift Valley textile mills, Rivatex, spend millions to revive

The Kenyan government will be spending 680 million Shilling ($6.8 million) to revive, expand and purchase equipment to facilitate operations at the Rift Valley Textile Mills (Rivatex) in Eldoret town, Uasin-Gishu County, Deputy President William Ruto said.

The deputy president urged investors to take advantage of emerging business opportunities in the country to initiate development projects. The project is being spearheaded by Moi University.

Related Keywords: AGOA, anti-dumping measures, cotton farming, cotton sector, EPZ textile companies, Kenyan textile industry, labour intensive value chain, liberalisation policies, mitumba, Rivatex, second hand clothes, WTO

Kenyan textile industry was flourishing in the 1980s before the influx of ‘mitumba’ into the country. Companies such as Rivatex offered jobs and clothed Kenyans in new clothes while Cotton farming in Nyanza and Western gave farmers a livelihood and provided cotton for the sector. This labour intensive value chain employed many Kenyans and significantly contributed to the fiscal revenue through taxes payable by the companies. Liberalisation policies followed a short while later and killed the sector.