Rivatex contracts cotton farmers to ensure steady supply

Eldoret-based textile manufacturer Rivatex is working to ensure a steady supply of raw cotton as it restructures its operations to attain international standards.

It has contracted farmers in cotton-growing zones in Eastern and Western Kenya to increase acreage under the cash crop.

“We are supplying farmers with certified seed and a ready market for the produce with attractive prices to motivate them to invest in the cash crop,” said Prof Thomas Kipkurgat, the managing director.

The demand for cotton is set to increase after the government injected Sh650 million to modernise New Rivatex, the main textile manufacturing firm in the Rift Valley.

National Treasury Cabinet Secretary Ukur Yatani, in the 2022/2023 budget, allocated Sh410.4 million for Rivatex and a further Sh212.1 million to upgrade cotton ginneries.

Mr Yatani allocated another Sh250.4 million for revitalizing the cotton industry.

Below capacity

Rivatex managers previously acknowledged that it was operating below capacity because of a shortage of cotton, producing an average of 40,000 bales against its capacity of 70,000 annually.

But the firm is expected to increase cotton consumption from 10,000 bales per day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from the previous 5,000 metres after it embarked on training farmers on modern cotton production.

It requires more than 500,000 acres of cotton to realise steady supply of raw materials for ready operations.

“The ratification of Bt cotton will guarantee steady supply of raw materials to support our operations,” said Prof Kipkurgat, adding that the company has entered into a partnership with counties in the region to boost the supply of the raw materials.

The county produces an average of 5,300 tonnes of cotton against demand of about 38,000, with the deficit worth about Sh17 billion being imported from neighbouring countries.

Modernisation

The New Rivatex secured a Sh3 billion loan three years ago from the Indian government and an additional Sh3 billion from the Treasury to replace its obsolete machines.

The textile firm was bought by Moi University for Sh205 million after it was placed under receivership more than 10 years ago.

The company used to produce 15.73 metres of fabric before it was placed under receivership in 2000 following massive administration and financial mismanagement.

It consisted of 5.5 million metres of dyed cotton, 7.7 million of printed cotton, and 1.17 million and 0.55 million metres of dyed and printed polyester/viscose, respectively.

Kenya produces an average of 5,300 tonnes of lint against demand of about 38,000, with the deficit being imported from neighbouring countries.

It imports fabrics worth Sh17 billion annually to Athi River-based EPZ manufacturers.

North Rift cotton production

The North Rift region produced 852.60 tonnes of cotton on 794.5 hectares last season.

“The expenditure on importing fabrics to EPZ firms is set to reduce because most farmers have been motivated to cultivate quality cotton driven by the increased demand and steady prices for the crop,” said James Yatich, a farmer in Salawa, Baringo County,

The revival of the Salawa cotton ginnery and distribution of free seed by the government has motivated farmers in the Kerio Valley region to invest in cotton production.

“The purchasing and distribution of free certified cotton seeds and stabilisation of prices for seed cotton to Sh32 per kilogram delivered to the ginnery has encouraged farmers to invest in the cultivation of the crop”, Mr Yatich added.

Other cotton-growing counties include Kisumu, Homa Bay, Bungoma, Baringo, and Tana River.

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